The Clean Energy Surge: AI Demand and Policy Deadlines Fuel Growth

iShares Global Clean Energy ETF US4642882249

The worldwide shift toward renewable power is accelerating in 2026, propelled by technological innovation and soaring demand for sustainable infrastructure. While U.S. policy shifts generate debate, the artificial intelligence revolution is emerging as a powerful new catalyst for the sector. A critical question remains: can the colossal energy appetite of tech giants offset potential regulatory headwinds?

Investors in the iShares Global Clean Energy ETF have witnessed substantial gains, with the fund advancing nearly 64% over the past year. Currently trading at $18.51, it sits just below its 52-week high of $19.03. The fund's total expense ratio of 0.39% remains below the category average.

The broader market context is one of historic capital allocation. Global investment in the energy transition hit a record $2.3 trillion in 2025, with renewable energy projects attracting $690 billion of that total.

Artificial Intelligence: The Next Power Consumer

A primary growth driver is the staggering electricity demand from artificial intelligence. According to S&P Global Energy forecasts, worldwide data center energy consumption is projected to rise by 17% in 2026 alone. By 2030, this demand could reach a level comparable to India's current annual electricity usage.

This trend is forcing major technology corporations to significantly increase their investments in clean energy solutions to meet sustainability commitments. Beyond solar and wind power, focus is expanding to include fuel cells, transportation electrification infrastructure, and sustainable aviation fuels (SAF).

U.S. Policy Deadlines Create Urgency

Despite political uncertainty in the United States, including the rollback of certain tax incentives last year, the country remains a pivotal growth market. This is largely due to a key deadline: July 1, 2026. This date serves as the cutoff for wind and solar projects to have commenced construction in order to qualify for specific tax credits.

This impending deadline is creating short-term momentum, accelerating project implementation. Consequently, market experts anticipate that more new clean energy capacity will be connected to the U.S. grid this year than in any previous year on record.

Technical Outlook and Index Considerations

From a technical perspective, the Relative Strength Index (RSI) reading of 27.9 currently suggests an oversold condition for the ETF, even following its strong annual performance.

Looking ahead, investors should monitor the scheduled rebalancing of the fund's underlying benchmark, the S&P Global Clean Energy Transition Index. These adjustments, which reflect evolving market dynamics, will determine the future composition of the ETF's holdings. The July 1, 2026, deadline for U.S. projects remains the central date shaping sector momentum through the first half of the year.