The global race to build data centers has gotten so intense that Meta Platforms Inc. (META) has ditched conventional plans and is now pitching billion-dollar tent cities. You've heard the story: AI needs servers, which need liquid cooling, advanced chips, and warehouse-sized computing clusters. But according to new research from Wood Mackenzie, that narrative misses the bigger—and far more metal-intensive—story.
"Most assessments of data center metals demand stop at the server room door," said Shashank Sriram, senior research analyst for aluminum markets at Wood Mackenzie. "That captures the smallest part of the picture."
The consultancy's latest report argues that data centers aren't standalone technology assets but rather giant power infrastructure projects. When you factor in grid upgrades, transmission lines, substations, and on-site generation, the total aluminum and copper demand rises to between three and four times the volume of the data center itself.
That distinction matters because it changes the outlook for commodity markets just as the global metals supply chain is coming under unprecedented strain. The recent conflict in the Middle East exposed the fragility of global supply chains. According to Reuters, data from the International Aluminum Institute show that Gulf region production run-rates fell by 2 million tons through March and April after missile strikes damaged key facilities, including Emirates Global Aluminum's Al Taweelah plant.
Powering Independent Systems
Inside a data center, aluminum demand is concentrated in cooling systems, which account for about 55% of internal use, while racking and enclosures account for another 25%. Copper plays a critical role in high-density computing nodes and electrical systems, yet increasing production has become a global struggle. The Global X Copper Miners ETF (COPX) is up 101.7% year-over-year.
Wood Mackenzie projects aluminum growth at 8% to 10% annually through the early 2030s. Still, they expect a plateau between 600,000 and 900,000 metric tons per year, as AI-driven design optimization and efficiency gains reduce material intensity.
The real multiplier emerges outside the building. As utilities struggle to connect new projects quickly enough, large operators like Meta are increasingly constructing their own power ecosystems. Solar farms, wind installations, battery storage, gas turbines, fuel cells, and even emerging small modular reactor concepts are becoming part of the standard playbook.
Wood Mackenzie estimates that this facility-level power layer alone effectively doubles the data center metals footprint. Busways, structural housings, and distribution systems need aluminum, while high-load electrical connections and grounding infrastructure require copper. Still, that demand excludes the grid itself.
Doubling the Output
Annual data center-driven power additions could rise from 15-20 GW today to 30-33 GW in the early 2030s. More than half of that growth is expected to occur in Asia-Pacific, while North America remains the early leader in deployment.
"These are not incremental grid connections," Wood Mackenzie noted. They are major reinforcement programs designed to handle power loads that existing networks were never built to absorb.
At that scale, aluminum dominates transmission lines and utility frameworks, while copper becomes indispensable in substations and underground connections. Their relationship is not one of substitution. "The split between the two metals is not a function of price," Wood Mackenzie said. "Physics defines outcomes. Price influences the boundaries."
