The data center buildout is putting strain on electrical energy supplies. Innovators are creating new energy systems including aluminum-fueled systems. This new system may
have an impact on the price of aluminum.
A startup, Voya Energy, is developing aluminum-fueled generators that produce clean and quiet electricity without combustion or grid dependance. Currently, the system utilizes low-grade scrap aluminum as fuel and creates electricity through a low temperature electromechanical process, according to Yahoo Finance.
Related: Space-Based Solar Power
Impact on Price of Aluminum
Since this new system has just begun, the price impact on aluminum should be minimal. However, should this type of electricity generation become popular it could cause the price of aluminum to rise.
Currently, the price of aluminum is being impacted by the demand created by data centers and tariffs.
Data centers use aluminum for cooling units, radiators, server racks and many other components. Aluminum-fueled energy systems are one more source of demand.
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We are a precision CNC machine shop located in Oklahoma. We manufacture components from aluminum, steel, copper and brass among other raw materials.
