Fidelity Clean Energy ETF (FRNW) gained 33% in just over five months, significantly outperforming the S&P 500's 11% return in the same period. The rally is driven not by traditional clean energy trends but by rising electricity demand from data centers, benefiting companies like GE Vernova, Ormat Technologies, and First Solar. These firms supply power equipment, geothermal energy, and solar panels, supported by long-term contracts with hyperscalers and favorable U.S. policies. While the fund's valuation is now high, the structural demand for data center power suggests potential for continued growth, though investors should watch interest rates and hyperscaler spending as key factors.
