The Big Picture 2025: Commodities

The increasing demand for commodities is directly linked to the growth of technology and renewable energy. The expansion of data centers, driven by cloud computing and artificial intelligence, has significantly increased the need for materials such as copper, aluminum, and steel. Over the past 12 to 18 months, this demand has prompted rapid infrastructure growth to support digital services.

Artificial intelligence is a primary contributor to the rising consumption of resources. Data centers require large quantities of critical minerals for wiring, construction, and energy-intensive operations. This has intensified the need for renewable energy to power these facilities, with renewable generation in the U.S. projected to account for a larger share of energy output by 2025.

The shift to renewable energy is further driving demand for materials such as lithium, cobalt, and nickel, which are essential for energy storage and clean power technologies. Recent policy measures, including the Inflation Reduction Act of 2022, have created financial incentives for renewable energy development, accelerating the deployment of clean energy projects and their associated resource requirements.

In 2025, the rising demand for key commodities will continue to support technological and energy transitions. Meeting these needs efficiently will remain a central focus for industries and policymakers.