Silver Prices Soar as Data Center Demand Continues to Grow
Silver prices have rebounded from their recent low of $56 an ounce to over $64 this week, up 8% in just over a week. This increase is largely due to growing demand for the metal from data centers used in artificial intelligence (AI) applications.
The white metal's price soared from around $30 an ounce at the beginning of 2025 to a record high of $115 an ounce 13 months later, driven by the massive investment in AI data centers. The rapid price increase was largely due to its high conductivity, corrosion resistance, and stability.
Despite recent reservations among investors and resulting price movement in related stocks, major data center hyperscalers like Meta Platforms, Amazon, Alphabet, and Microsoft appear to be forging ahead with their spending plans, which could continue to drive demand for silver. The Vancouver-based metals producer Wheaton Precious Metals reported stellar second-quarter results last week, with earnings nearly doubling from the same period a year ago.