Artificial intelligence is often discussed as a software revolution, but its growth depends on very real infrastructure: semiconductors, memory, networking equipment, energy systems, cooling technology, data centers and grid capacity. The VanEck Data Center Supply Chain ETF (RACK) is designed to give investors targeted exposure to the companies supplying the infrastructure that AI runs on.

• What is the data center supply chain?
• Why is the data center supply chain a compelling investment theme right now?
• What is the VanEck Data Center Supply Chain ETF (RACK)?
• How is RACK different from other AI or technology ETFs?
• What parts of the data center supply chain does RACK target?
• Why use a pure-play approach to investing in data center infrastructure?
• Is RACK focused only on U.S. companies?
• What role can RACK play in a portfolio?
• What are the main risks investors should keep in mind?
• How does RACK fit within VanEck’s thematic ETF lineup?
• How to Buy VanEck ETFs?

What is the data center supply chain?

The data center supply chain refers to the companies enabling the buildout and operation of modern data centers. That includes businesses involved in semiconductors, memory and storage, networking equipment, servers, cooling systems, power equipment, grid infrastructure, nuclear energy and data center operations.

In simple terms, it is the physical layer of AI.

Why is the data center supply chain a compelling investment theme right now?

AI is creating a major infrastructure cycle. Demand for compute is rising quickly, and the supply chain is under pressure across multiple layers at once, including chips, memory, power and cooling.

What makes this cycle different is that AI does not scale through software alone. It requires physical capacity: more data centers, more energy, more networking and more specialized equipment. Companies that solve these bottlenecks may benefit as AI investment continues to move from experimentation to large-scale deployment.

What is the VanEck Data Center Supply Chain ETF (RACK)?

RACK is a passively managed ETF designed to provide targeted exposure to companies contributing to the buildout and ongoing operation of data centers.

The fund seeks to track the MarketVector Data Center Supply Chain Index, a rules-based index focused on U.S.-listed companies across data center infrastructure, equipment and services. The strategy is built to capture the companies supporting AI infrastructure, rather than only the hyperscalers spending on it.

How is RACK different from other AI or technology ETFs?

Many AI ETFs focus on software, platforms or broad technology exposure. RACK focuses on the infrastructure behind AI.

That means the fund can include companies tied to semiconductors, memory, data center equipment, power systems, grid modernization, nuclear energy and cooling technologies. The goal is to give investors access to the physical buildout required for AI to scale.

What parts of the data center supply chain does RACK target?

RACK’s underlying index is organized around four key areas:

Fabless Semiconductors and Quantum Computing

Companies involved in semiconductor design, hardware and quantum computing technologies.

Nuclear Energy Producers

Companies tied to uranium, nuclear power generation, nuclear reactor construction, maintenance, equipment or services.

Data Center Solutions

Companies involved in memory and storage, data center ownership or operation, networking equipment, servers, interconnection software and AI cloud platforms.

Power Bridge

Companies enabling energy storage, power management, cooling, off-grid generation, grid modernization, transmission, substations, transformers and cable connectivity.

Together, these categories reflect the full stack of infrastructure needed to support AI workloads.

Why use a pure-play approach to investing in data center infrastructure?

A pure-play approach matters because data center exposure can be diluted inside broad technology or industrial funds. Many companies may have some connection to AI infrastructure, but only a smaller group derives meaningful revenue from the theme.

RACK’s underlying index generally requires companies to generate at least 50% of revenues from eligible data center supply chain activities for initial inclusion. The index also applies single-security caps and rebalances quarterly.

Is RACK focused only on U.S. companies?

RACK’s underlying index includes U.S.-listed companies. However, many of those companies operate globally, reflecting the worldwide nature of the AI infrastructure buildout.

Data centers, power systems, semiconductor supply chains and cloud infrastructure are global markets, even when the securities are listed in the U.S.

What role can RACK play in a portfolio?

RACK can serve as a targeted thematic allocation for investors who believe AI growth will require sustained investment in physical infrastructure. For those who already own broad technology or mega-cap growth exposure, it offers a different way to access the AI theme.

The fund focuses on the suppliers and infrastructure providers behind the hyperscalers, fabless semiconductor and quantum computing names, memory, networking and server makers, data center operators, nuclear energy producers, and power bridge companies covering cooling, energy storage, grid modernization and transmission. The result is diversified exposure across a complex, multi-sector supply chain in a single vehicle.

What are the main risks investors should keep in mind?

Like any thematic equity strategy, RACK comes with meaningful risks. Data center supply chain companies may be affected by regulation, government spending, supply chain disruptions, cybersecurity incidents, geopolitical instability, skilled labor shortages, financing needs and rapid technological change.

The fund may also be subject to risks related to equity securities, REITs, communication services, industrials, information technology, market volatility, passive management, index tracking, liquidity, issuer concentration and non-diversification.

How does RACK fit within VanEck’s thematic ETF lineup?

RACK adds an infrastructure-oriented layer to VanEck’s thematic ETF lineup. Where other strategies may focus on semiconductors, digital assets, robotics or other areas of innovation, RACK targets the physical supply chain enabling AI compute capacity.

In that sense, RACK is designed to capture one of the foundational parts of the AI economy: the companies building, powering, cooling and connecting the data centers that make AI possible.

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