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VanEck Green Bond ETF eyes data center financing shift to green deals
The VanEck Green Bond ETF, GRNB, holds $185.7 million, with a 30-day SEC yield of 5.1% and an effective duration of 4.4 years.
As data center demand has continued, the financing side has taken on a stronger environmental focus, with policymakers in both blue and red states introducing moratoriums on new data center construction, often citing local environmental concerns, ETF Trends reports. The shift is creating new interest in green bond financing aligned with sustainability requirements for AI infrastructure.
ETF Trends points to the VanEck Green Bond ETF, ticker GRNB, as the first ETF dedicated to green bonds. The article says GRNB turned nine years old in March and is a $185.66 million fund, with a 30-day SEC yield of 5.08% and an effective duration of 4.42 years, suggesting it is not highly sensitive to changes in interest rates.
The outlet also highlights growth in green lending tied to data centers since 2020, citing 113 data center green bonds and loans issued globally totaling about $61.3 billion. According to VanEck’s Sunny Bokhari, proceeds are typically earmarked for renewable energy to power data centers, energy efficient cooling systems, and low carbon construction, with issuers also reporting on how proceeds were used and the environmental outcomes achieved.
ETF Trends says the data center green financing market has expanded since 2020 and notes that deal counts were in the single digits annually through 2023, before AI infrastructure investment drove growth across both conventional and green financing. The piece argues that this momentum could support GRNB’s long term prospects as green bonds become a more common funding mechanism for data center operators.