Utilities ETF gains from rising data-center power demand

The Invesco Dorsey Wright Utilities Momentum ETF (PUI) has increased exposure to utilities that could benefit from higher electricity demand driven by large-scale data centers. The 37-stock fund lists DTE Energy, Evergy and Alliant Energy among its holdings.

PUI follows the Dorsey Wright Utilities Technical Leaders Index, a relative-strength, rules-based benchmark. The index selects and weights names based on price momentum rather than market capitalization, so stocks showing stronger price performance can enter the fund even if they are not the largest utilities by market value.

Large data centers are creating heavier electricity loads and new contract opportunities for local power companies. The ETF’s momentum approach allows utilities tied to hyperscaler and other large-load projects to be included when those names have strong price momentum, though the fund is not limited to companies with data-center exposure.

Analyst reports cite DTE Energy as an example of a utility that could gain from data center contracts. Estimates project about 7% average annual earnings growth through 2030, with the potential to exceed 8% if DTE secures a third hyperscaler customer. DTE’s current investment plan for 2026–30 is $36.5 billion and analysts indicate it could be about 20% larger under certain scenarios.

Evergy is another PUI holding linked to large-load growth prospects. Analysts say projects in development and in late stages could approximately double the utility’s current system demand. Evergy has outlined a five-year, $22 billion investment plan.

Alliant Energy appears in the fund and is planning roughly $78 billion in investments through 2030. Analyst commentary highlights the company’s record of generating returns from prior projects.

Because PUI’s index is not cap-weighted, the ETF does not automatically overweight the biggest utilities. Selection and weight are driven by relative-strength signals, which can increase the fund’s exposure to utilities connected to data-center demand when those stocks show momentum.

Analysts note that utilities account for a small portion of broad market indexes, which affects how sector ETFs are used in portfolios. PUI will mark its 21st year in October and currently holds 37 stocks.