Data centre demand for silver is on track to reach roughly 42.3 million ounces annually by 2027, according to the World Silver Survey 2026 published by Metals Focus and the Silver Institute. The figure, derived from the survey’s projection that data centre silver offtake will exceed 10% of electrical and electronics demand, compares with Chile’s 2025 silver output of 42.7 million ounces.
The survey, released in April 2026, identifies silver’s role in data centres as essential to chip packaging, connectors, power modules, signal-preserving pastes and thermal interface materials managing extreme thermal loads. Silver is also noted for its use in nuclear reactor control rods, driven by the power demands of hyper-scale facilities and the expansion of small modular reactors.
Silver traded at $67.00 per ounce on Wednesday, up 5.8% to an eight-week high as long-dated Treasury yields declined from earlier weekly peaks. The metal remains about 45% below its January 29 intraday high but has gained roughly 77% over the past year. Industrial demand for silver is forecast to decline in 2026, primarily due to reduced photovoltaic sector consumption, which is projected to shed 35.6 million ounces year-over-year.
The survey’s estimate of 42.3 million ounces for data centre demand is a scale benchmark rather than a published 2026 figure, as the survey’s demand forecasts extend only to 2026. The 42.3 million ounce threshold is expected to be exceeded in 2027, based on the 2026 electrical and electronics demand base of 422.9 million ounces. Data centre demand alone would represent 15.6% of non-photovoltaic electronics silver consumption, which totalled 271.9 million ounces in 2026.
The semiconductor market’s recent surge in revenue does not directly translate to proportional silver consumption, as silver usage tracks wafer starts, package counts and paste volumes rather than dollar-based sales growth. Second-quarter chip sales reached $403.3 billion, up 35.1% quarter-over-quarter, while TrendForce reported DRAM contract prices rising roughly 93% to 98% in the first quarter, lifting industry revenue 81% to $97 billion. Memory revenue is expected to grow a further 58% to 63% in the second quarter before slowing to 13% to 18% in the third.
The survey also highlights ongoing thrifting efforts in electronics, with India’s electrical contacts segment expected to reduce silver content by 5% to 7% due to persistently high prices. This trend contrasts with solar panel manufacturing, where a larger-scale engineering effort to reduce silver per panel is already reflected in the 35.6 million ounce decline forecast for 2026.
For silver investors, the analysis suggests a two- to three-year horizon with a positive demand outlook, as data centre consumption emerges as a material and growing industrial use. The survey’s primary figures—10% of electrical and electronics demand and the 422.9 million ounce base—are published inputs, while the 42.3 million ounce estimate is a derived calculation. Total industrial demand is projected to fall from 657.4 million ounces in 2025 to 639.6 million ounces in 2026, with overall demand declining from 1,130.6 million ounces to 1,112.6 million ounces. The composition of demand is shifting toward slower thrifting in electronics and away from faster reductions in solar applications.
