iShares Global Clean Energy ETF jumps 45% in 5 months on power demand and tax incentives.

The iShares Global Clean Energy ETF (ICLN) surged 45% over five months in 2025, driven by rising electricity demand from data centers and a tax-credit deadline in July 2026. Unlike previous rallies based on subsidies and low interest rates, the current growth is fueled by infrastructure needs as data centers now consume a growing share of U.S. electricity. However, this momentum faces challenges: the tax-credit pull-forward is a one-time event, future data center spending must remain strong, and political risks could affect the sector. Investors should watch hyperscaler capital expenditures, post-July equipment orders, and fund flows for signs of sustained growth or a pause.