Tema Electrification ETF Outperforms S&P 500 Amid AI Data Center Boom

The Tema Electrification ETF (VOLT) has emerged as a standout investment, significantly outperforming the S&P 500 in 2025 due to its focus on companies involved in power infrastructure critical to data centers and AI technology. Analysts at Ned Davis Research recommend an "Overweight" rating on VOLT, projecting it could outperform the S&P 500 by roughly 20% by 2027, driven by soaring electricity demand linked to AI and data center growth. Global electricity consumption by data centers is expected to more than double by 2030, with U.S. energy demand in this sector growing at a compounded annual rate of 15%, according to the International Energy Agency and Energy Information Administration. The fund holds companies such as Powell Industries, NextEra Energy, and Bel Fuse, which are considered key beneficiaries of the AI infrastructure buildout. Meanwhile, the Indian data center market is also expanding rapidly, projected to almost double by 2030, supported by digital adoption and government initiatives, with companies like Anant Raj investing heavily in data center capacity. These trends underscore a broad, global surge in demand for energy and infrastructure tied to the data center ecosystem, making related ETFs and stocks attractive investment opportunities.