Silver Demand Shifts Towards Data Centers Amid Declining Photovoltaic Sector

The silver price has been rising, reaching an eight-week high after falling back from earlier highs in long-dated Treasury yields. At $67.00 per ounce, it's currently trading at a ratio of 67.1 to gold, which stands at $4,495.94. While the metal is still down about 45% from its January 29 intraday peak, it has increased by roughly 77% over the past year.

The industrial demand for silver is expected to decline this year due in part to photovoltaics, but a recent survey reveals that data centers are set to become a significant driver of demand. According to Metals Focus and the Silver Institute's World Silver Survey 2026, data center demand is forecasted to exceed 10% of electrical and electronics consumption by 2027.

The report highlights silver's role in various applications within data centers, including chip packaging, connectors, and power modules, which are essential for managing extreme thermal loads and high-frequency signals. As computing demands continue to grow through 2030, this demand is expected to become even more critical.