There has been plenty of coverage on the global AI boom.
Artificial intelligence has moved from a niche technology theme into a foundational force reshaping industries, infrastructure, and global investment markets.
For investors, there are many ways to target this emerging market.
A new report from Global X highlights the opportunity that may lie outside of AI companies, and in the backbone of energy storage.
For investors, this growing demand could create a significant long-term opportunity for companies involved in lithium, battery production and energy storage technology.
These areas are all targeted by the Global X Battery Tech & Lithium ETF (ASX: ACDC).
Here are three reasons why investors should be considering this ASX ETF.
Image source: Getty Images
AI data centres need batteries
Artificial intelligence is driving a massive global buildout of data centres. Every time an AI model answers a question, generates an image or processes information, it relies on powerful servers housed inside these facilities.
However, AI data centres consume huge amounts of electricity, and in many cases, the power grid isn't keeping up. That's where batteries are becoming increasingly important.
Battery technology is no longer just a backup system sitting quietly in the background. It is rapidly becoming a core piece of AI infrastructure, helping data centres manage surging energy demand, avoid grid bottlenecks and keep operations running around the clock.
Energy storage is becoming a major growth industry
Research from BloombergNEF suggests data centre operators could add between 2 and 3 gigawatt-hours (GWh) of battery storage capacity each year through to 2028.
More significantly, there are already more than 40GWh of additional projects that have been confirmed but are yet to be installed.
Together, these figures underline the pace at which demand for battery technology could grow as AI adoption accelerates.
The opportunity also extends far beyond data centres themselves. Large-scale battery deployments require lithium, battery cells, raw materials and specialised energy storage systems, creating potential tailwinds across the broader battery and lithium supply chain.
Government investment growing
Additionally, governments are increasingly focused on energy security and reducing dependence on imported energy.
Geopolitical tensions and global conflicts have highlighted the risks of relying too heavily on overseas energy supplies.
As a result, many countries are investing heavily in renewable energy and battery storage systems to strengthen domestic energy infrastructure.
Renewable energy sources like solar and wind are intermittent, meaning they don't produce electricity constantly. Batteries help solve this problem by storing excess energy and releasing it when needed.
This creates another powerful demand driver for battery technology alongside the rapid growth of AI infrastructure.
Gaining exposure with a single ASX ETF
For investors looking to gain exposure to this theme, the Global X Battery Tech & Lithium ETF invests across areas such as:
- Lithium mining and refining
- Battery manufacturing
- Energy storage technology
- Electric vehicle battery production.
The fund focuses on a trend sitting at the intersection of two major long-term trends: the rise of AI and the global transition toward cleaner, more resilient energy systems.
