How the AI boom is reshaping aluminum markets—and why timing matters for flood protection
If you’ve been watching commodity markets lately, you may have noticed a quiet but important shift: aluminum prices have surged past $3,000 per metric ton, reaching levels not seen since 2022. This isn’t a short-term fluctuation—it’s the result of powerful global forces that are reshaping aluminum supply chains for years to come.
For homeowners and property managers considering flood protection, this matters more than you might expect.
At Water Gate Systems, aluminum isn’t just a material—it’s the backbone of the Aqua-Cade™ flood barrier system, chosen for its strength, durability, corrosion resistance, and long service life. Understanding what’s happening in the aluminum market helps explain why acting now can protect both your property and your budget.
The AI–Aluminum Connection You Don’t Hear About
The rapid expansion of artificial intelligence has triggered a massive global build-out of data centers. Inside every one of these facilities are server racks, cooling units, radiators, heat exchangers, and climate-control systems—all heavily dependent on aluminum.
Industry forecasts show data-center power demand growing 22% annually, reaching 220 gigawatts by 2030—nearly six times 2020 levels. Cooling systems alone account for roughly 40% of a data center’s total energy use, and aluminum’s thermal conductivity makes it indispensable.
Ironically, the same data centers driving aluminum demand are also making domestic aluminum production increasingly difficult.
Why Aluminum Supply Is Under Real Pressure
Aluminum smelting is extraordinarily energy-intensive. Producing a single metric ton requires roughly 14 megawatt-hours of electricity—enough to power an average American home for about 18 months.
As Big Tech companies outbid other industries for electricity, smelters struggle to compete. Bank of America projects U.S. electricity demand will grow five to ten times faster over the next decade than it did previously. The result: constrained domestic aluminum capacity with little short-term relief.
And energy isn’t the only pressure point.
Tariffs, China, and a Tightening Global Market
Several additional forces are tightening aluminum availability:
- U.S. tariffs on imported aluminum extrusions increased from 25% to 50% in 2025
- China, which produces nearly 60% of the world’s aluminum, has capped production at 45 million tons
- Chinese exports fell sharply as domestic consumption is prioritized
- Rebuilding meaningful U.S. capacity would require $25 billion and five years—minimum
In short, aluminum pricing pressure isn’t temporary. It’s structural.
What This Means for Aqua-Cade™ Customers
The Aqua-Cade™ system is engineered using high-grade extruded aluminum, selected specifically for:
- Long-term structural strength under water pressure
- Resistance to corrosion in coastal environments
- Reusability over decades—not seasons
These same qualities make aluminum indispensable to AI infrastructure—and subject to the same global constraints.
While Water Gate Systems has worked hard to maintain stable pricing, sustained increases in raw material costs eventually affect every industry. Custom aluminum extrusions are already seeing longer lead times and higher replacement costs.
The Difference: Water Gate Systems Planned Ahead
Here’s the good news.
Water Gate Systems anticipated these market pressures well in advance. Our warehouse is stocked with pre-surge aluminum inventory, secured before current pricing escalated. And we’re committed to a simple principle:
No gouging. Ever.
As long as our inventory and contracted pricing allow, we pass those savings directly to our customers. If you’re seeing inflated proposals justified by “sudden aluminum increases,” it’s fair to ask why those suppliers weren’t paying attention sooner.
We were.
Why Acting Now Matters
If you’re considering flood protection for your home or business, timing matters:
- Current pricing reflects aluminum costs that may not hold
- Custom extrusion lead times are already extending
- Future installations may carry unavoidable cost increases
The best time to prepare for a flood is before the water rises.
The best time to secure an Aqua-Cade™ system is before material markets rise further.
Protect What Matters—While Protection Is Still Affordable
Flood protection is not just about barriers—it’s about peace of mind, asset preservation, and long-term value. The Aqua-Cade™ system was engineered to perform when conditions are at their worst—and Water Gate Systems is committed to standing behind it with fair pricing and professional installation.
If you’re ready to move forward, now is the window to lock in current pricing and protect what matters most.
Contact Water Gate Systems today to schedule your consultation.
— Kenny Roy, CEO
Water Gate Systems
