US data center expansion drives significant rise in cement demand: ACA

The rapid expansion of US data centers is expected to significantly increase cement demand, requiring nearly 1 million mt over the next three years, according to the American Cement Association.

Data centers are projected to consume about 247,000 mt of cement in 2025, totaling 860,000 mt over the next three years, ACA said in a June 19 report.

US imports of cement and clinker have climbed sharply in the past 10 years, though they have shown more stability in the past two years, according to US International Trade Commission data

Platts, part of S&P Global Commodity Insights, assessed CEMDEX Turkey at $55/mt FOB and Cement Freight Med to Houston at $22/mt on June 26, both flat week over week.

As of March, there are 5,426 operational data centers in the US, according to the ACA's Data Center Market Analysis, which projected the number of facilities will approach 6,000 by the end of 2027.

Major tech companies, including Amazon, Microsoft, Google and Meta, are driving this surge, accounting for about 25% of new data center projects.

Despite this growth, challenges loom. The sector faces power limitations, regulatory hurdles and labor shortages that could hinder construction progress, ACA said.

Additionally, data centers are projected to increase their share of national electricity consumption from 4.4% in 2023 to between 7% and 12% by 2028, according to the ACA.

Microsoft declined to comment for the story, and Google, Meta and Amazon could not be reached for comment by Platts.