AI data centers' massive demand for aluminum is crushing the US aluminum industry

November 28, 2025

AI data centers' massive demand for aluminum is crushing the US aluminum industry

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The boom in metal-intensive technologies like data centers and electric vehicles has made it a prime time to be in the US aluminum business.

Prices are booming. Part of that is because inside every data center are cooling units, server racks, radiators, and a litany of other pieces and parts made out of aluminum.

No wonder demand is high.

But data centers guzzle enormous amounts of power, and electricity prices are skyrocketing.

In the US alone, electricity demand is expected to grow five to 10 times faster over the next 10 years than it did in the previous decade, per Bank of America.

For aluminum smelters, this is a problem. Producing aluminum is incredibly energy-intensive, and without cheap power, those smelters can't operate.

If power weren't enough of a problem, the sector is also facing pressure from overseas, where international competitors are boosting supply.

Indonesia, already a major global supplier of bauxite, is steadily increasing its production of processed aluminum as it seeks to become a powerhouse, per Jefferies.

China, the world's largest producer of aluminum several times over, is doing the same. Yahoo Finance reports.

EdgeUp

📊 Wall Street Week Ahead Investors on watch for AI, economic updates as US stocks steady

Investors will look in the coming week for signals about profitability for artificial intelligence companies, as well as the broader economy's health, to steady the U.S. equity market.

Stocks rebounded this week from their biggest pullback since April, helped by a firming conviction that the U.S. Federal Reserve will cut interest rates in December.

But some of the market's heavyweight shares remained volatile. Big moves in Nvidia and Alphabet for instance, were driven by developments in AI. Reuters reports.


📊 Shares end tough November on firmer ground helped by Fed cut bets

Global stocks headed into a jittery final session of the month on Friday, as an outage at exchange operator CME Group halted trading in a swathe of futures on currencies, commodities, Treasuries and stocks, further draining market liquidity.

The outage at CME datacentres came with U.S. investors due to return from the Thanksgiving holiday for a shortened session on Friday. Reuters reports.


🛒 Amazon, Walmart's Flipkart plan new consumer loan offerings in India

Amazon.com is gearing up to provide loans to small businesses in India, Reuters reported Friday, citing a company executive.

The e-commerce giant will offer customized "lending propositions" for merchants and small businesses to enhance cash flow management and provide capital, the news agency reported, citing Mahendra Nerurkar, Amazon vice president for payments for emerging markets.

Walmart-owned (WMT) Flipkart is planning to offer buy-now, pay-later products in India, Reuters reported, citing company filings.

Flipkart registered its Flipkart Finance non-bank lending arm in March and is now waiting for the Reserve Bank of India's final approval for its business plans, according to the report. MarketScreener reports.


🤖 Nvidia rebuts critics in memo to analysts amid pushback campaign

Nvidia, the world's most valuable company, has gone on the defensive against skeptics of its $4.5 trillion valuation, down from a historic $5 trillion, by waging an information campaign on Wall Street and social media.

Last week, the company issued a detailed memo to sell-side stock analysts with a point-by-point rebuttal of claims made by Michael Burry, who was featured in the book and movie "The Big Short," and others writing on Substack.

Burry, who shot to fame for betting against the U.S. housing market ahead of the 2008 financial crisis, is widely watched by investors for his comments on markets and the economy; he has stepped up criticism of Nvidia in recent weeks in a new newsletter. Reuters reports.


❄️ 90% of derivatives freeze as cooling failure stops global finance

At 03:00 GMT on November 28, 2025, a cooling system failure halted 90% of global derivatives trading after machines at a CyrusOne data center in Illinois overheated.

This caused the CME Group’s systems to shut down. This technical outage revealed a critical vulnerability in financial infrastructure.

Physical cooling capacity, not computation or cyber threats, suddenly became the weak link for global market operations.

Cooling System Failure Halts Global Trading CME Group confirmed that all markets were halted due to a cooling failure at a CyrusOne data center.

The exchange, handling approximately 30 million contracts daily, ceased operations across its entire Globex platform.

Treasury futures, energy, and agricultural markets froze from Chicago to Kuala Lumpur. Yahoo Finance reports.

Top 5 Movers in Early Pre-Market

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM Eastern Time)
Benzinga reports.


1) SMX: SMX (Security Matters)
Total gain: +60.91%

2) ADTX: Aditxt
Total gain: +21.01%

3) TMC: TMC The Metals Co
Total gain: +16.46%

4) CODI: Compass Diversified Hldgs
Total gain: +10.13%

5) DBVT: DBV Technologies
Total gain: +10.11%

Yesterday’s Biggest Movers

The closing price of the top three market percent gainers trading near or above $3 on November 26.
Stock Analysis reports.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1) SMX: SMX (Security Matters) Public Limited Company
Total gain: +194.42%
The company announced a regional collaboration designed to create a new industrial-grade verification standard across Southeast Asia and Europe. Shortly after, the company revealed a multi-country program that integrates material-level verification into recycling and advanced manufacturing systems. Then came confirmation that SMX now operates across four major economies. Each announcement expanded the footprint. Each one also made the next partnership easier to secure. Access Newswire reports.

2) QNTM: Quantum BioPharma Ltd.
Total gain: +41.92%
The company announced that national television network CTV News’ flagship investigative program W5 has aired Part 2 of a three-part series about Quantum Biopharma and the company’s allegations of stock market manipulation. Globe Newswire reports.

3) OSS: One Stop Systems, Inc.
Total gain: +29.07%
The stock appeared to be moving on no notable news.

Today’s Notable Earnings

*Estimate and Actual numbers represent Earnings Per Share in US Dollars


GLBS: Globus Maritime
Q3 2025
After Market Close
Estimate: -0.120
Actual: N/A

CHA: Chagee Holdings
Q3 2025
Before Market Open
Estimate: 0.400
Actual: N/A

Today’s Economic Dates

Time (ET)/ Report/ Period

9:45 AM - Chicago Business Barometer (PMI) - Nov.

Parting Thoughts

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street.”

– Jesse Livermore

Sourced in: Reminiscences of a Stock Operator Summary.

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