How the US AI Data Center Boom is Boosting a Brazilian Steelmaker
A surge in US data center construction is lifting the North American operations of Brazilian steelmaker Gerdau, offsetting domestic headwinds.
The massive buildout of artificial intelligence infrastructure in the United States is no longer just a windfall for Silicon Valley chipmakers and software developers. The physical reality of housing thousands of heavy AI servers is now driving a surge in demand for the raw structural steel needed to build massive warehouse-sized facilities. This structural shift is directly boosting heavy industrial companies that supply the physical backbone of the tech boom.
Brazilian steelmaker Gerdau, one of the largest producers of long steel in the Americas, reported on October 26, 2026, that its third-quarter adjusted net income rose 39.7% year-over-year to R$ 1.52 billion (approximately $280 million). While the company's domestic market in Brazil faced headwinds from cheap steel imports and high interest rates, its US and Canadian mills stepped in to carry the balance sheet. Gerdau's North American division contributed 76% of the company's total adjusted EBITDA, recording a four-year high operating margin of 27.7%.
According to a UBS Group construction analysis of Dodge Data & Analytics figures published on September 22, 2026, data centers represent roughly 5% of the $1.3 trillion non-residential construction market in the US. However, they require a disproportionate amount of heavy structural steel beams and merchant bar products. The UBS analysis revealed that US data center construction starts surged 197% over the trailing 12-month period ending in August 2026, as tech giants raced to increase capacity.
To capture this demand, Gerdau is actively expanding its production capacity in the US. The company is in the final stages of a major expansion at its Midlothian, Texas facility. According to Gerdau's third-quarter 2026 earnings call on October 27, 2026, the additions of productive capacity at the Texas plant are expected to be fully noticed throughout 2027. By focusing capital on high-margin US infrastructure projects, the steelmaker is aiming to shield its broader business from seasonal slowdowns and industrial oversupply back home in South America.
Where the company trades
Gerdau S.A. is listed on the New York Stock Exchange under the ticker GGB. The company's performance is also reflected in broad-market industrial exchange-traded funds, such as the iShares MSCI Brazil ETF (EWZ), which holds Gerdau as a component of its South American industrial index allocation.
