The rapid growth of artificial intelligence and data centers is driving a surge in demand for natural resources, including copper, natural gas, and rare earth metals. As the digital economy continues to expand, companies are investing heavily in data center infrastructure, which requires significant amounts of these resources. Copper, in particular, is a crucial component in data center construction, with AI-related demand expected to add up to 1 million metric tons by 2030.
The increasing demand for natural gas is also notable, as data centers rely on natural gas turbines to generate electricity. In fact, data centers are expected to increase U.S. gas demand by 6 billion cubic feet per day by 2030. Other resources, such as rare earth magnets, concrete, and industrial metals, are also in high demand for building and operating data centers.
Investors can capitalize on this trend by investing in companies that provide the essential building blocks for the digital economy. The Global Resources Fund (PSPFX) is one option, as it invests in basic materials and energy stocks that are critical to the growth of the data center industry.
As the demand for natural resources continues to grow, companies are also prioritizing sustainability and energy efficiency. Some companies, like Google, are investing in renewable energy to power their data centers, while others are exploring innovative solutions like liquid cooling and direct-to-chip cooling to reduce energy consumption.
The growth of the data center industry is expected to continue, with global financing for data center projects projected to reach $170 billion in 2025. As data centers account for a growing share of electricity demand, the need for sustainable energy solutions will become increasingly important. By investing in the natural resources behind the AI and data center boom, investors can tap into the growth potential of this rapidly evolving industry.
