Data Center Expansion Fuels Bull Market in Key Commodities
New York, Wednesday, 12 November 2025.
Rising demand for data centers is driving a bull market in commodities, notably gold, natural gas, and crude oil, presenting lucrative opportunities for strategic investors.
The Role of Data Centers in Commodity Markets
The expansion of data centers globally is reshaping the commodity markets, driving a bull market particularly in gold, natural gas, base metals, and crude oil. As noted by Jeff Currie, former global head of commodities research at Goldman Sachs, the demand for these commodities is propelled by the raw material constraints necessary for building new data centers, such as gas turbines and grid infrastructure, which heavily rely on copper [1][2].
Current Commodity Trends and Projections
The commodity complex has seen significant gains in 2025, with the General Commodity Index (GCI) increasing by 25% [2]. Gold, in particular, has surged by 54% year-to-date as of November 12, 2025, driven by strong central bank purchases and investor confidence [1]. Meanwhile, copper prices are also expected to rise, currently trading at around $11,000 per tonne, with projections to reach $15,000 per tonne in the next 2-3 years [2]. These trends underscore the growing strategic importance of commodities in the context of technological infrastructure expansion.
Investment and Economic Implications
Investments in commodities are increasingly seen as a hedge against market volatility and inflation, particularly as the underinvestment in crude oil projects continues, with no major non-OPEC projects planned beyond March 2026 [2]. This underinvestment, coupled with the high capital expenditure required for infrastructure development, positions commodities as one of the most undervalued asset classes, providing opportunities for strategic investments [2].
Future Outlook and Strategic Considerations
Looking ahead, the demand for commodities is expected to remain robust, driven by continued expansion in data centers and technological advancements. Jeff Currie emphasizes that the market is entering a ‘supercycle’ that could lead to sustained outperformance in areas like oil and metals throughout the decade [1]. This presents a strategic opportunity for investors to align their portfolios with these macroeconomic trends, capitalizing on the emerging market dynamics.