Data Centers Need Copper, Concrete, and Cooling. Here Are 3 Boring Industrials Set to Cash In.

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Boring Industrials Set to Gain from AI Data Center Boom

Copper, concrete, and cooling firms stand to benefit from the surge in AI data center construction.

South Africa’s data center story is still in its infancy, but global trends in hyperscale AI infrastructure can’t be ignored. Copper, a core input for wiring and servers, is under pressure with demand expected to outstrip supply by 2040—making Freeport-McMoRan’s (FCX) reserves and technology a proxy for this growth. Closer to home, companies like Barloworld and Motus could see indirect benefits via logistics and equipment tied to construction projects. Vulcan Materials (VMC) benefits from data centers’ voracious appetite for concrete and aggregates—materials fundamental to building these massive hubs. Vertiv (VRT), a specialist in power and cooling solutions, stands out with strong revenue growth forecasts as data centers require ever more sophisticated temperature control. For South African investors, watching USD/ZAR is key since a weaker rand could raise local infrastructure costs but help exporters. This sector will tempt investors seeking industrial exposure outside tech stocks, but a slowdown in global IT spending or a rapid shift to more efficient hardware could throw a wrench in the works. this is just our opinion and not financial advice