Silver Price Soars on Data Centers and AI Demand

UBS has forecasted silver to reach $70 per ounce by December 2026, citing growing demand from data centers and AI infrastructure. The bank sees this trend as a key driver for the metal's price increase, alongside grid investment and electric vehicles.

The server industry is a significant consumer of silver, with industrial demand accounting for 58% of total silver consumption in 2025. However, AI-related server demand grew while total industrial demand fell by 3%, due to solar manufacturers reducing their use of silver and substituting other materials.

Analysts project that AI's need for silver will more than double the solar sector's demand by the end of the decade. This bullish opportunity is attributed to a combination of both solar and AI driving demand, alongside investment interest and gold's supportive backdrop.