The explosive growth of the data centers for artificial intelligence (AI) in the USA increases significantly in demand for cement.
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According to the American Cement Association, the demand for cement is expected to increase by almost one million tons above the current level within the next three years. In the United States in the United States, around 247,000 tons of cement in the USA will be consumed in 2025 and 860,000 tons in the next three years, the association said in a new report.
The increased need for cement is good news for the stocks of important construction companies such as Eagle Materials (Exp), Martin Marietta (MLM) and Vulcan Materials Co. (VMC). The American Cement Association announced that at the end of March this year, 5,426 operational AI calculus centers in the United States gave in the United States. This number is expected to exceed over 6,000 by 2027, which to promote the need for more cement and concrete.
Technology company
Demand growth comes as a leading technology company such as Amazon (AMZN), Microsoft (MSFT) and Meta platforms (META) to build and operate AI calculus centers. According to market information, technology companies are currently accounting for around 25% of all new data center projects in the United States.
Despite the forecast growth, the challenges in satisfying cement demand. This includes regulatory hurdles and labor shortages that could hinder the construction, says the association. In addition, it is predicted for data centers that they increase their share in the national electricity consumption from 4.4% in 2023 to 12% by 2028. Technology companies like Microsoft are turning to nuclear power to cover their electricity requirements.
The existence of Eagle Materials, a leading American cement and concrete supplier, has decreased by 18% this year.
Is ExpSt Stock a purchase?
The Eagle Materials share has a moderate merchant under eight Wall Street companies. This assessment is based on three purchase and five hold recommendations that have been assigned in the past three months. The average Exp Exp course of $ 238.57 implies 17.79% compared to the current level.
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