AI Infrastructure

The AI Infrastructure basket targets the physical backbone enabling explosive growth in artificial intelligence workloads, specifically the power delivery, electrical connectivity, and advanced cooling systems required for high-density AI data centers. It comprises 10 names with concentrated exposure across industrial and technology infrastructure sectors, where the top three positions—Vertiv (VRT), nVent Electric (NVT), and Bloom Energy (BE)—each carry 10% weight and maximum 50 exposure scores. The investment logic rests on surging capital expenditures by hyperscalers and AI operators, which have driven data center power capacity projections from approximately 30 GW in 2025 toward 90 GW or more by 2030, alongside liquid cooling demand expanding at over 30% annually through 2033. These companies supply mission-critical components: VRT provides integrated power and liquid cooling systems with an 80% data center revenue exposure and a multi-billion-dollar backlog; NVT delivers electrical connection, protection, and liquid cooling distribution solutions with over 1 GW of deployed capacity and partnerships for NVIDIA AI architectures; and BE offers solid oxide fuel cells for reliable onsite power generation, securing multi-billion-dollar commitments such as a $5 billion Brookfield partnership and a $2.65 billion AEP deal to bypass grid constraints.

Key risks include execution challenges around rapid capacity expansion, potential integration issues from acquisitions, and any deceleration in hyperscaler AI spending that could pressure concentrated backlogs in data center verticals. With no specific warnings flagged, the basket maintains disciplined construction around an effective N of 10.0. The highest-conviction position is Vertiv (VRT) due to its unmatched scale in end-to-end critical power and thermal management, record 2.9 book-to-bill ratio in late 2025, $15 billion order backlog, and direct positioning in every major AI data center buildout through innovations like adaptive liquid cooling and higher-voltage architectures that directly address rack densities exceeding 100 kW.