Asia’s best-performing environmental fund has increased exposure to Japan as it expects the nation’s technology sector to prove increasingly pivotal in solving the artificial intelligence industry’s surging power demands.

The BNP Paribas Green Tigers Fund has returned 34% year-to-date, fueled by bets on Japanese equities that sit at the core of its stock-selection strategy, said Oscar Yang, senior portfolio manager at Impax Asset Management. The $208 million portfolio was the top-performing “dark green” strategy, the EU’s highest sustainability classification, in Asia through June 30, Bloomberg-compiled data show.

“A lot of the Japanese companies are so unique and they’re to some extent almost at a monopoly position,” Yang said. “If you cut Japanese companies’ products out of your supply chain, you just basically can’t operate, especially for leading-edge capacity.”