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Good ol’ fashioned holiday spirit or genuine market optimism? Does it matter? Steel market participants stepped off the emotional rollercoaster of 2025 with a sense of hopefulness for fresh starts and strong possibilities in 2026.
Let’s face it. Market conditions will never and have never guaranteed certainty. However, as tariff negotiations start to finalize and project proposals start to gain momentum, the steel industry has a lot to be excited about.
Here are a few of the industries that are expected to drive steel demand in the coming months.
Data Center Development
Love it or hate it, the widespread implementation of artificial intelligence has arrived. With its arrival comes the need for very large data centers.
Data centers do not require steel as an operating commodity, but that does not mean they can run without it. Steel remains optimal for structural integrity, power safety, and temperature control.
Steel or precast concrete make up the outer shell of the facilities. A precast concrete exterior requires the use of steel rebar for strength and durability. Centers also rely on steel for structural framing, server trays, cable racks, mechanical supports, and exterior enclosures for generators or chillers.
Steel and aluminum embody numerous formidable properties that make them optimal for use in data centers. They offer grounding and electromagnetic interface shielding, load-bearing strength, and stability in fire or seismic events—perfect for server trays. The number of server trays in a data center varies by the size of the facility and its energy load, but some estimates are 500 to 8,300 racks per data center. Racks remain in constant use and require periodic reconfiguration or replacement.
The power distribution systems require steel for switch gear enclosures, bus ducts and cable trays, generator housings, and casing trays. Steel also is used in the structure of cooling systems, such as chiller frames, cooling towers, and hot/cold containment systems.
Projects such as the Meta Mesa Data Center in Mesa, Ariz., are partially operational. Meta invested about $1 billion in the facility, which was estimated to consume 12,000 tons of steel, according to Construction Dive. Those steel materials included structural shapes for beams and columns, joist and deck, rebar in the foundation, and galvanized steel products for miscellaneous use.
Like Meta, Amazon has several data center locations in development across the U.S. The $15 billion expansion of its New Carlisle, Ind., facility, scheduled to begin in early 2026, is the state’s largest project.
Infrastructure Demand
In 2025, President Donald Trump and the Department of Transportation unveiled an infrastructure plan to improve structures throughout the U.S. in 2026. Trump and his administration aimed to “stimulate infrastructure investment” to the tune of $200 billion in federal funds and “at least $1.5 trillion in infrastructure investments with partners at the state, local, tribal, and private level,” according to statements from the White House.
The I-10 Calcasieu River Bridge Project located between Lake Charles and Westlake, La., is slated to begin production in the spring. The estimated design and construction costs for the project are nearly $2.3 billion. The 5.5-mile corridor and bridge are steel intensive, as is the $15.1 billion liquified natural gas (LNG) export terminal to be developed in the region in 2026. The terminal and pipelines for that project will span more than 80 miles and aid in expanding U.S. energy export capabilities.
In the Pacific Northwest, steel procurement for a bridge connecting Portland, Ore., to Vancouver, Wash., over the Columbia River on Interstate 5 began in late 2025. However, most steel products are expected to be procured in 2026 when building commences. The DOT issued a grant of $30 million to help fund the bridge replacement.
Another big-ticket infrastructure item pushing up steel demand in 2026 is the Brent Spence Bridge Corridor, linking Cincinnati and Covington, Ky. The project is funded by a federal grant of $1.6 billion. Project leaders expect major construction and material procurement as the year progresses.
The $21 billion Brightline West high-speed rail project connecting Las Vegas to Southern California is projected to demand about 63,000 tons of steel rail, according to the project’s press materials. However, that figure doesn’t include the structural steel needed for bridges and viaduct structures; rebar in foundations and retaining walls; architectural steel used for station development; overhead catenary steel in structures and stations; and miscellaneous steel used for handrails, embeds, and drainage. There are many more tons of steel required for the project's success.
Energy Calls for Steel
Robust supplies of oil and natural gas render the U.S. a strong global competitor. LNG terminals, like the Calcasieu Pass LNG export terminal and pipeline, have the support of the president and his administration. As such, export-supportive structures like pipelines and LNG terminals are expected to mushroom in the coming years.
Some experts estimate that steel for LNG infrastructure makes up 15% to 30% of a project’s total cost. Nickel or manganese steel alloys are used in storage tanks and transportation pipes because they are not degraded by the chemical components of LNG, like a traditional carbon-based steel.
However, LNG buildings demand substantial amounts of carbon-based steel, from structural beams and columns, pipe racks, compressor buildings, and process modules to handrails, stairs, platforms, and supports. Structural shapes are used throughout these facilities, while steel plates serve as baseplates and connectors. Rebar reinforcement and cages are needed for pipe trenches, dikes and containment walls, tank slabs, and wharf or marine structures. Utility systems from fire prevention to water distribution rely on carbon-based steel.
For natural gas conveyance, the Apex Pipeline, Blackcomb Pipeline, Saguaro Connector Pipeline, and Rio Bravo Pipeline are all green lit for 2026. These projects require multiple steel components for operations, including compressor stations, large pipelines and feeder lines, processing terminal tie-ins and fittings, and support structures and station equipment.
The Reshoring X-Factor
Data centers, insfrastructure, and energy projects offer promise for increasing steel demand in 2026, but they may be only a small part of the larger steel demand picture. Many domestic manufacturers have relied on affordable parts from abroad to build products with lower material costs, and high tariffs on steel have strained automakers, agricultural machinery producers, and other OEMs in the U.S.
As domestic makers pivot toward finding U.S.-based outfits to supply parts, the domestic supply chain is in a state of transition. How reshoring or retooling will change the steel industry is uncertain right now.
Hyundai Steel Co. is building a $5.8 billion electric arc furnace steelmaking facility in Louisiana, adding steel capacity to the U.S. market. Who else will follow its lead?
