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As Electricity Demand Increases, Steel Mills Hold a Big Bargaining Chip
05/06/2026 - Fears that the electric utilities will suddenly prioritize data center needs over steel mill needs, given the large gap in their power demands, are probably unfounded, two industry executives said Wednesday.
Speaking during the AISTech 2026 Town Hall Forum, CMC chief financial officer Paul Lawrence and Nucor Corp. chief financial officer Jack Sullivan said electric arc furnace steel producers have an important, symbiotic relationship with the utilities that should not be overlooked.
Producers’ willingness to temporarily curtail their own production during times of peak electricity demand makes them extremely valuable in stabilizing the grid. It’s an ability data centers do not have, they said.
“I don’t think there’s any risk that large steel producers are going to end up at the kid’s table (at Thanksgiving dinner),” Sullivan said.
But one area in which data centers are winning is manpower, Kristopher M. Westbrooks, president and chief operating officer of Metallus, told Town Hall Forum attendees.
Westbrooks said data center projects are drawing qualified tradespeople away from steel mill projects, especially welders and electricians, with higher wages and better hours and working conditions.
“It’s been a challenge to get quality tradespeople to come out,” he said.
Producers’ willingness to temporarily curtail their own production during times of peak electricity demand makes them extremely valuable in stabilizing the grid. It’s an ability data centers do not have, they said.
“I don’t think there’s any risk that large steel producers are going to end up at the kid’s table (at Thanksgiving dinner),” Sullivan said.
But one area in which data centers are winning is manpower, Kristopher M. Westbrooks, president and chief operating officer of Metallus, told Town Hall Forum attendees.
Westbrooks said data center projects are drawing qualified tradespeople away from steel mill projects, especially welders and electricians, with higher wages and better hours and working conditions.
“It’s been a challenge to get quality tradespeople to come out,” he said.
