By Paul Ryder, Sales Director at ARO

The cost of building the digital backbone of modern business, from fibre networks to data centre racks to enterprise Wi‑Fi systems, will climb sharply throughout 2026. The reason? The same force that has inflated the price of memory is now driving an unprecedented surge in global metal prices: AI infrastructure growth.

Across copper, aluminium, steel, and key industrial metals, prices and lead times are rising rapidly as hyperscale AI data centres consume far more raw materials than the market anticipated. Analysts warn that this imbalance will ripple across every sector that depends on these materials, including organisations upgrading their cyber, networking, and modern‑work environments.

Copper: The First Major Bottleneck

Copper is at the centre of the storm. AI data centres require staggering volumes of copper (up to 50,000 tons per hyperscale facility) due to the metal’s essential role in power delivery, networking backbones, and cooling systems.

The result? A dramatic supply shortfall.

  • The International Copper Study Group projects a 150,000‑ton refined copper deficit in 2026.
  • Prices are expected to hit $12,500-$13,000 per ton by Q2-Q4 2026, with potential spikes beyond that.

For organisations planning fibre rollouts, network upgrades, or new comms rooms, this means not only higher costs, but also longer lead times, as suppliers prioritise mega‑scale data centre projects.

Steel and Aluminium Under Pressure

It isn’t just copper feeling the squeeze. AI‑driven data centres also require:

  • Up to 20,000 tons of steel for structural frameworks
  • Large quantities of aluminium for cooling systems and server rack assemblies

These same metals are widely used across:

  • Cable trays and containment
  • Server enclosures
  • Switch and router housings
  • Access control and security hardware
  • Modern‑work edge devices

With supply tightening, manufacturers are already signalling production slowdowns and selective reprioritisation, meaning infrastructure projects could face delays well into 2027.

Silver: The Hidden Risk in High‑Performance Networking

Demand for silver is climbing due to its role in:

  • 5G radios
  • High‑efficiency networking chipsets
  • Optical transceivers
  • AI‑driven sensor technologies

Analysts expect silver prices to continue rising in 2026 as supply lags behind industrial demand, particularly from solar and AI‑related components.

This means premium networking hardware and cyber‑security appliances may see rising costs and tight availability as OEMs adjust to material shortages.

Supply Chain Risks Extend Lead Times

Supply constraints and geopolitical tensions are creating a perfect storm across metals markets. The World Bank reports that tightening supply conditions across copper, aluminium, and other base metals will persist through 2026-2027.

At the same time, geopolitical instability and shifting trade policies create volatility that complicates procurement planning. As one 2026 industry report notes, the global market is entering a “metals supercycle”, driven in part by AI, electrification, and supply chain fragmentation.

For businesses, this means:

  • Longer waits for cabling, racks, and switching hardware
  • Sudden price adjustments from vendors
  • More frequent backorders
  • Reduced stock levels across distributors

In short: projects that once took weeks may now take months.

How This Impacts Your IT Projects in 2026

These pressures will affect nearly every organisation planning to upgrade or expand their infrastructure, including:

  • Campus‑wide Wi‑Fi 6E / Wi‑Fi 7 deployments (dependent on aluminium & copper‑rich components)
  • Structured cabling refreshes
  • SD‑WAN and security edge rollouts
  • Data centre migrations
  • Modern‑work collaboration hardware refresh cycles

As materials rise in cost, manufacturers often hold prices steady for as long as possible, but the industry is nearing a tipping point. With copper alone rising 40-50% year‑over‑year and projected to climb further, many OEMs will eventually face the same decision seen recently in the memory market: absorb the cost or pass it through.

Most will choose the latter.

What Businesses Should Do Now

Organisations planning 2026-2027 infrastructure projects should consider the following:

1. Secure Budgets Earlier Than Usual

Metal‑driven pricing volatility makes mid‑year repricing likely across many hardware lines.

2. Bring Forward Procurement Windows

Shortages may mean placing orders months earlier than you would have in 2023–2024.

3. Evaluate Design Alternatives

For example:

  • Hybrid copper‑and‑fibre designs
  • Modular rack systems with lower steel requirements
  • Pre‑terminated cabling to reduce wastage

4. Partner With Vendors Offering Better Supply Visibility

Distributors with stronger inventories or domestic supply chains may mitigate project delays.

The Bottom Line for 2026

Just as AI has pushed RAM prices sharply higher, its explosive demand for metals is reshaping the entire technology supply chain. With copper, aluminium, steel, and silver all under pressure (and supply unlikely to meet demand), project delays and cost increases are now a realistic planning assumption, not a remote risk.

At ARO we’re actively supporting clients through these challenges with smarter project planning, alternative design options, and early‑stage procurement strategies to keep modern‑work and infrastructure programmes moving forward.

If you’re planning a 2026 upgrade, from cyber‑security to networking to full modern‑work transformation, now is the time to talk.