First Trust Cloud Computing ETF
Best Data Center & Cloud Computing ETFs for 2026
Discover the best data center and cloud computing ETFs for 2026. Compare SKYY, WCLD, CLOU and funds investing in cloud infrastructure and AI data centers.
Complete Guide to Data Center & Cloud Computing ETFs in 2026
Cloud computing and data center infrastructure are experiencing explosive growth driven by AI workloads, digital transformation, and the migration of enterprise computing to the cloud. The global cloud market exceeds $600 billion annually, and AI data center construction spending is projected to reach $500 billion by 2030.
AI Data Center Boom
Training and running AI models requires enormous computing power, driving unprecedented demand for data center capacity. Companies like Equinix, Digital Realty, and Vertiv are building new facilities at a record pace, while NVIDIA, AMD, and Broadcom supply the AI chips that power these facilities.
Top Cloud & Data Center ETFs
SKYY (First Trust Cloud Computing ETF): Broad cloud exposure including SaaS, IaaS, and PaaS companies. Holds Microsoft, Amazon, Google, Salesforce, and Snowflake.
WCLD (WisdomTree Cloud Computing ETF): Focused on pure-play cloud software companies with high growth rates.
CLOU (Global X Cloud Computing ETF): Tracks the Indxx Global Cloud Computing Index with approximately 35 cloud companies.
WisdomTree Cloud Computing Fund
Global X Cloud Computing ETF
Frequently asked questions
What are data center and cloud computing ETFs?
These ETFs provide exposure to companies that build, manage, or supply infrastructure, software, and services for cloud computing and data centers.
Why invest in cloud computing ETFs?
Cloud computing is growing rapidly due to AI, digital transformation, and enterprise migration to cloud infrastructure, creating long-term secular growth opportunities.
What is driving the AI data center boom?
AI workloads require massive computing power, driving demand for new data centers, high-performance chips, and cloud infrastructure.
Which companies are key in cloud and data center ETFs?
Major holdings often include Microsoft, Amazon, Google, Salesforce, Snowflake, Equinix, Digital Realty, NVIDIA, AMD, and Broadcom.
What is SKYY?
SKYY (First Trust Cloud Computing ETF) provides broad cloud exposure including SaaS, IaaS, and PaaS companies like Microsoft, Amazon, Google, Salesforce, and Snowflake.
What is WCLD?
WCLD (WisdomTree Cloud Computing ETF) focuses on high-growth, pure-play cloud software companies.
What is CLOU?
CLOU (Global X Cloud Computing ETF) tracks the Indxx Global Cloud Computing Index, holding around 35 cloud infrastructure and services companies.
Which cloud ETF is the #1 pick?
SKYY (First Trust Cloud Computing ETF) is considered the top choice for broad, diversified exposure to cloud infrastructure and software companies.
What is the expense ratio of SKYY?
SKYY has an expense ratio of 0.6%.
What is the expense ratio of WCLD?
WCLD has an expense ratio of 0.45%.
What is the expense ratio of CLOU?
CLOU has an expense ratio of 0.68%.
Do cloud computing ETFs pay dividends?
Most cloud ETFs have minimal or no dividend yield, as the companies are growth-focused and reinvest earnings for expansion.
What risks are associated with cloud computing ETFs?
Risks include high valuation multiples, technology disruption, competition, regulatory changes, and sector concentration risk.
Are cloud ETFs global or US-focused?
Some ETFs like SKYY are US-focused, while CLOU provides global exposure including international cloud infrastructure and software companies.
How can investors gain AI exposure through ETFs?
AI exposure comes indirectly via cloud and data center ETFs, as AI workloads drive demand for cloud infrastructure, servers, and chips.
What is the market size of global cloud computing?
The global cloud market exceeds $600 billion annually, with AI data center spending projected to reach $500 billion by 2030.
Which sectors do cloud ETFs invest in?
Cloud ETFs invest in software (SaaS, IaaS, PaaS), hardware (servers, networking), semiconductor suppliers, and data center REITs.
Are cloud computing ETFs suitable for long-term growth?
Yes, they are well-suited for long-term growth investors targeting secular trends like cloud adoption, AI, and enterprise digital transformation.
What differentiates WCLD from SKYY?
WCLD is more concentrated in high-growth cloud software companies, while SKYY offers broader cloud infrastructure and software exposure.
What differentiates CLOU from SKYY and WCLD?
CLOU provides a smaller, globally diversified cloud portfolio with around 35 holdings, focusing on companies providing cloud infrastructure and services.
How often are cloud ETF holdings updated?
Holdings are typically updated quarterly based on index rebalancing or ETF manager discretion, depending on whether the ETF is passive or actively managed.
Can US investors buy international cloud ETFs?
Yes, US-listed ETFs like CLOU include global cloud companies, giving investors exposure to non-US markets through a single fund.