Power and data demand exposes metals investment gap

Data centre growth is increasing demand for power networks and metals, but delays to mining investment could constrain infrastructure delivery, Wood Mackenzie warned. Growing investment in data centres and their supporting power infrastructure is increasing demand for metals, while permitting delays and geopolitical uncertainty constrain new mining projects, according to Wood Mackenzie.

The consultancy is tracking more than 250 GW of proposed data centre capacity globally, over three times the pipeline a year ago. Its analysis highlights investment requirements across mining, electricity generation, transmission and energy storage, although the timing of project commitments remains uncertain.

The findings, presented at Wood Mackenzie’s LME Forum in London on October 21, suggest that the metals requirements of artificial intelligence extend well beyond data centre buildings. Transmission networks, substations and dedicated generation can require three to four times more metal than the facilities they support, the consultancy said.

However, elevated commodity prices have yet to translate into the level of upstream investment needed to meet anticipated demand.

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