New Report: Rapid Construction of AI Data Centers Creating Demand for Components Appalachian Manufacturers Can Supply

Data center boom fueling demand for structural steel, racking systems, and enclosures.

PITTSBURGH, PA, UNITED STATES, November 20, 2025 /EINPresswire.com/ -- The exponential global demand for artificial intelligence (AI) applications and cloud computing is driving rapid growth in data center construction, creating new demand for structural steel, racking systems, and enclosures—the physical backbone of digital infrastructure. Appalachian manufacturers have the expertise and capacity to capture significant market share in this expanding sector, argues a new report from the Energy & Manufacturing in Appalachia (EMA) initiative.

The EMA initiative is led by Catalyst Connection, southwestern Pennsylvania’s economic development organization, along with the following regional partners: Alliance for Manufacturing and Technology (AMT), Industrial Modernization Center, Magnet, Manufacturers Resource Center, MANTEC, Maryland MEP, Northeastern PA IRC, Northwestern PA IRC, Reimagine Appalachia, and West Virginia University.

“Companies that are ready to respond with sustainable steel and next-gen designs will lead the market in the race to build AI data centers,” said Petra Mitchell, President and CEO of Catalyst Connection. “Appalachia’s manufacturers are ready, willing, and able to supply these critical components.”

Rapid Growth in Data Center Supply Chain Creating New Opportunities

The global market for data center racks and enclosures is valued at $5.2 billion in 2025, growing to $9.4 billion by 2030, according to a recent estimate. For small and medium-sized manufacturers, this growth opens new opportunities to supply:

• Structural steel that forms the framework of data center buildings, supporting the load of equipment and allowing for seismic, wind, and expansion compliance.
• Racking systems for hosting servers, network devices, and power equipment engineered for density and heat management.
• Enclosures, the secure, thermally managed housings that protect sensitive electronics and integrate airflow and sensor systems.

Hyperscale data centers can use up to 20,000 metric tons of steel, significantly more than typical commercial buildings, as they typically require massive structural loads, multi-story designs, and dense internal infrastructure.

The federal government and states are stepping up to support AI data center construction. A recent Trump Administration executive order provides access to federal land and streamlines permitting. States, including New York, Ohio, and Pennsylvania, are offering a variety of tax incentives to encourage the job growth AI data centers can bring.

Report Highlights Key Opportunities and Challenges for Appalachia Manufacturers

Appalachia manufacturers are uniquely positioned to supply these components but will be under pressure to meet increasing sustainability requirements from corporate customers, green building mandates, and regulatory requirements. EMA’s AI Data Centers: Structural Steel, Racking and Enclosures report finds that Appalachian manufacturers that can respond with flexible, code-compliant, and energy-efficient products have a significant opportunity to capture market share in this rapidly expanding sector.

For example, sustainability concerns related to the use of steel primarily focus on the high embodied carbon and energy intensity of steel production, as well as possible contamination. One response is for data centers to have an Environmental Product Declaration (EPD) for the steel they use in their centers — a standardized, third-party verified document that provides transparent information about the environmental impacts of a product throughout its entire lifecycle, from raw material extraction through manufacturing, use, and end-of-life recycling or disposal.

Read the full report

About Catalyst Connection

Catalyst Connection is a southwestern Pennsylvania economic development organization dedicated to serving manufacturers. For more than 35 years, Catalyst has operated with a focus on powering potential through delivering technical assistance and management consulting services and developing long-standing partnerships across the region. Catalyst maintains a deeply held commitment to modernizing manufacturing and enabling opportunity across business enterprises, individuals, and throughout communities.

Catalyst Connection is supported, in part, by the Pennsylvania Department of Community and Economic Development and the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). As such, we are an affiliate of the Pennsylvania Industrial Resource Center (IRC) and the MEP National Network in southwestern Pennsylvania.

About the Energy & Manufacturing in Appalachia initiative

The Energy & Manufacturing in Appalachia (EMA) initiative provides technical assistance and business support to small and medium manufacturers and enterprises in 156 counties of Maryland, New York, Ohio, Pennsylvania, and West Virginia seeking to expand business, production and jobs in the energy supply chains or to be more energy efficient.

Allison Moux
Catalyst Connection
+1 412-918-4252
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