AI Infrastructure Portfolio, Series 1

The exponential growth of digital data is reshaping industries worldwide, with data centers serving as the backbone of this transformation. Data centers are specialized facilities that house computer systems, providing the infrastructure needed for storing, processing, and managing the massive amounts of data generated by our increasingly connected world. Data centers enable organizations to build, deploy, and operate artificial intelligence (AI) applications at scale. To build data centers, several key components and considerations are essential, such as real estate developers that build data centers, utilities that power them, semiconductor firms that produce chips, and cloud service hyperscalers that host trillions of terabytes of data. This unit investment trust (UIT) invests in companies that are involved in building and powering data centers.

Consider The Following:

• As the AI boom continues, compute power is emerging as an essential resource. It is estimated that by 2030, data centers will need approximately $6.7 trillion in global investments to meet the surging demand. In addition, the capacity needs for AI and non-AI workloads has the potential to almost triple by 2030, with AI capacity increasing 3.5 times and making up an estimated 70% of the total.¹


• Data center real estate investment trusts (REITs) own and manage highly specialized facilities that house the critical IT infrastructure driving today’s economy. As of first quarter 2025, data center REITs realized a year-over-year increase in funds from operations of 21.3%. In addition, on average, data center statistics reveal a 7.2% year-over-year gain in net operating income, underscoring that data center REITs have surpassed the pace of inflation.²


• According to IDC, generative AI spending is anticipated to grow at a 59.2% compound annual growth rate (CAGR) from 2024-2028, outpacing the overall AI market. Over the same period, IDC expects worldwide spending on AI solutions to grow at a 29% CAGR to reach more than $632 billion by 2028.


• Global semiconductor sales have recorded steady growth over recent decades topping $500 billion for the first time in 2021. Sales are anticipated to reach approximately $697.2 billion in 2025.³

¹ McKinsey
² Nareit
³ World Semiconductor Trade Statistics (WSTS), SIA (Semiconductor Industry Association), and Statista

Portfolio Objective

This UIT seeks above-average capital appreciation; however, there is no assurance the objective will be met.

You should consider the portfolio's investment objective, risks, and charges and expenses carefully before investing. Contact your financial professional or call First Trust Portfolios L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the portfolio. Read it carefully before you invest.

Risk Considerations

An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.

You should be aware that the portfolio is concentrated in stocks in the information technology sector which involves additional risks, including limited diversification. The companies engaged in the information technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance. There is no assurance that the projections stated herein will be realized.

Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

Large capitalization companies may grow at a slower rate than the overall market.

As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cybersecurity.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.

A public health crisis, and the ensuing policies enacted by governments and central banks in response, could cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.

This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.