Data Centers Fuel Demand for Copper, Concrete, and Cooling
Data centers are driving demand for copper, concrete, and cooling systems, which is good news for companies like Freeport-McMoRan (NYSE: FCX), Vulcan Materials (NYSE: VMC), and Vertiv (NYSE: VRT).
Copper is a crucial component in the construction of data centers, as it's needed to create and transmit power. According to S&P Global's 'Copper in the age of AI' report, AI and data centers will contribute 13.7% of total copper demand growth from 2025 to 2030.
Vulcan Materials CEO Ronnie Pruitt noted that large project opportunities continue to drive non-residential activity, particularly data centers. The aggregates company also sees a pickup in LNG projects along with energy generation and power infrastructure expansion, which is being driven by the data center boom.
Vertiv's power, cooling, and IT infrastructure solutions have made it a darling among investors looking for exposure to AI build-out spending. Vertiv CEO Giordano Albertazzi said that the company sees no sign of weakening in data center demand, with its order pipeline continuing to strengthen.