Solar, EVs, Data Centers to Drive Silver Demand Through 2030

Global industrial demand for silver is projected to increase over the next five years, supported by the expansion of the solar energy, automotive, and data center sectors. According to a new report by Oxford Economics for the Silver Institute, these industries will drive consumption through 2030 as part of the energy transition and digital transformation.

The study notes that the solar photovoltaic (PV) sector has grown significantly, accounting for 29% of industrial silver demand in 2024, up from 11% in 2014. While technological advancements have reduced the amount of silver required per cell, total volume continues to rise due to global installation targets, such as the European Union's goal to reach 700GW of capacity by 2030.

In July 2025, US President Donald Trump signed an executive order eliminating federal green energy subsidies. Despite this, Oxford Economics forecasts that US solar generation will grow at a 14% CAGR through 2030, supported by state-level incentives and high electricity demand from data centers. Conversely, protectionist measures, including recent tariffs imposed by the United States and the European Union on Chinese PV units, are expected to increase production costs and could impact future demand.

The transition to electric vehicles (EVs) also represents a shift in consumption. EVs require approximately 25g to 50g of silver per unit, significantly more than internal combustion engines. Oxford Economics forecasts that EVs will overtake traditional vehicles as the primary source of automotive silver demand by 2027, growing at a compound annual rate of 3.4% through 2031. 

The expansion of digital infrastructure is also increasing demand for silver-intensive hardware. The number of data centers globally has grown 11 times since 2000, surpassing 4,600 facilities today. More significantly, total global IT power capacity expanded by approximately 53 times, from 0.93GW in 2000 to nearly 50GW in 2025. This 5,252% increase in power capacity indicates a shift toward larger, more powerful facilities that require substantial amounts of silver for servers, switches, and cooling systems, the report notes.

Currently, North America, Western Europe, and East and Southeast Asia account for 88% of global computing capacity, with the US alone holding over 22.57GW. However, the report anticipates that construction will expand into new regions, such as Latin America, South Asia, and Africa, to support latency-sensitive applications that require proximity to end-users. In the US, data center construction is forecast to grow by 57% over the next 10 years, setting a benchmark for expansion in other markets.