Data centers are driving demand for aluminum. The data center demand, along with tariffs and electricity demand, is sending the price of aluminum up.
According to information from Yahoo Finance, data centers use aluminum for cooling units, radiators, server racks and many other components. Data centers use a great amount of electricity and vast amounts of electricity are also needed by aluminumsmelters. This negatively affects the supply of aluminum. With demand up and supply static, the price of aluminum goes up
The reason smelters require so much electricity is because material called alumina must be heated to 1700 degrees Fahrenheit as part of the aluminum making process. In a year, an aluminum smelter uses the same amount of electricity as a large city like Oklahoma City.
Related: Copper Demand Projected to Increase
New Aluminum Facility in Oklahoma
Emirates Global Aluminum will be building a new aluminum production facility in Oklahoma at the Port of Inola. This is the first primary aluminum production facility to be built in the United States in 45 years. The cost is estimated at $4 Billion. When completed, this will help increase the supply of domestically produced aluminum.
Related: Impact of Aluminum Tariffs on CNC Machine Shops
Products Made from Aluminum
The number of products made from aluminum is vast. A sampling includes foil, cans, window frames, bicycles, auto bodies and components, aircraft structures and components, heat sinks, cooling units, cookware and sports equipment.
About C&C Machine
We are a precision CNC machine shop near Tulsa, Oklahoma and Port of Inola. The prices of materials like aluminum and copper do affect us and our customers.
