Bank of America Sees Electricity Demand Outpacing GDP by 2028, Metals Surge
BAC•Bank of America projects electricity demand to outpace GDP through 2028, driven by EV growth and AI data center power rising from 55 to 84 gigawatts. Strategists forecast metals demand acceleration, citing copper up 21%, aluminum up 12%, and roughly 150% and 85% gains in lithium and cobalt.
1. Electricity Demand Outlook
Bank of America Global Research forecasts electricity demand growth will exceed GDP expansion through 2028, marking the end of a decade-long period of stagnant power usage and underscoring a broader shift toward electrification.
2. EV and AI Data Center Drivers
The projection is underpinned by accelerating electric vehicle adoption and a surge in AI data center deployment, with global power consumption in data centers rising from roughly 55 gigawatts today to an estimated 84 gigawatts within two years.
3. Metals Demand Acceleration
Strategists anticipate that this wave of electrification will drive substantial increases in industrial metals usage, noting year-over-year gains of 21% in copper, 12% in aluminum, approximately 150% in lithium and 85% in cobalt.
4. Implications for Industrials
The accelerated metals demand could bolster revenues for miners and equipment suppliers while reinforcing Bank of America’s metals research credentials, although shifting trade policies may introduce commodity price volatility.
