AI data centers need more raw materials. One investor is betting on recyclers.

Detailed summary

As hyperscalers race to build AI data centers, companies that recycle critical components have become an investment opportunity.

Massive data centers, it turns out, are pretty resource-intensive. And the AI sector's demand for raw materials like aluminum and copper is only increasing, Tazia Smith, the CEO of Closed Loop Capital Management, told Business Insider on Wednesday. "That integration and demand for certain resources, as you alluded to, feels pretty structural going forward," she said during Business Insider's Tech Insider video event. "Not a cyclical blip, but a more permanent systemic transition." Smith's company funds businesses that reuse raw materials in their supply chains.

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