The race to build data centers capable of powering artificial intelligence (AI) is driving a less obvious market: industrial paints and coatings. As companies such as Microsoft, Google, and Amazon expand their computing infrastructure, manufacturers of protective materials are seeing demand grow—even though the product is almost always the same color: gray.
PPG, a Pittsburgh-based company (USA), expects its sales of paints intended for data centers to triple this year compared with the previous year. The projection comfortably outpaces the company’s overall performance, with total sales growing 7% and reaching US$4.5 billion (about R$24 billion) in the most recent quarter.
“I have never seen a boom this big,” said Jenn Solcz, vice president of PPG’s protective and marine coatings division in the Americas.
Paint that protects structures from fires
- Part of the demand comes from products developed to improve the safety of the facilities. One of PPG’s highlights is Steelguard 951, a coating that expands when exposed to high temperatures and forms a thick layer capable of delaying the heat’s reaching the steel;
- In a test conducted at the company’s innovation center, researchers directed flames at metal panels covered with the product. The paint, originally applied in a layer about one millimeter thick, turned into a dark crust nearly one centimeter thick;
- The expansion creates a barrier that helps prevent steel from heating up and losing strength during a fire. According to PPG, Steelguard can protect steel structures for up to four hours, giving people more time to leave the site;
- The fire risk in data centers is not limited to servers. Backup power generators, batteries, and nearby electrical installations can also be sources of fire, explained Paul Fenton, the company’s chemist and engineer;
- The coatings have other important functions. They can protect steel structures from rust, reduce static electricity buildup, and limit electrical interference between equipment. Special floors, for example, help prevent discharges from damaging machinery or causing fires.
Data centers expand the coatings market
PPG saw the opportunity about three years ago, following the launch of ChatGPT and the proliferation of announcements of new data centers and chip factories. Contractors, steel structure manufacturers, and equipment suppliers began competing for projects linked to the expansion of AI infrastructure.
The company formed teams dedicated to the technology sector and began working with architects, engineers, and construction companies even before construction began. The strategy seeks to include its products on the approved materials lists for each project from the initial stages.
In April, the company introduced a package of solutions aimed at data centers.The offering includes coatings to protect steel structures from fire, primers that help prevent corrosion, flooring that reduces risks associated with static electricity, and materials designed to block electrical interference.
PPG also supplies coatings for more than 75 types of components used in these facilities, including security camera housings and refrigeration equipment.
The company says its products have already been used in data centers from Brazil to China. More than half of the business opportunities, however, are in the United States, which is home to about 5,500 such facilities, according to the Artificial Intelligence Index report from Stanford University (USA).
The race to build data centers capable of powering artificial intelligence (AI) is driving a less obvious market: industrial paints and coatings – Image: shihabsarkar/Shutterstock
The sector is also benefiting competitors. Sherwin-Williams, PPG’s largest rival, reported that its products are used in various areas of data centers, from steel beams to structures that house servers. In July, the company’s CEO, Heidi Petz, said sales in the protective and marine coatings division had grown by a double-digit percentage in the tens compared with the previous year, driven, among other factors, by the construction of these facilities.
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Why is almost everything gray?
Despite the sophistication of the products, the visual result is often understated. Most cladding is sold in different shades of gray and applied over concrete and steel, which also have a similar appearance.
The reason is simple: data centers are built primarily to house machines, not to accommodate people. Therefore, the appearance of indoor spaces is rarely a priority for owners, architects, and engineers.
Matthew Giddings, a professional at the commercial real estate company JLL who works with data center management, estimates that cladding can cost between US$3 million and US$8 million (about R$16 million to R$43 million) in a single building. Although this represents only a small portion of the total construction cost, it helps gauge the market created by the expansion of AI infrastructure.
There are exceptions to the predominance of gray. Chilled water pipes may be painted blue, while pipes connected to firefighting systems are often red, making them easier for maintenance teams to identify. In response to pressure from local communities for developments to have a less industrial appearance, some companies have also begun adding colors to their façades.
PPG, founded in 1883 as Pittsburgh Plate Glass Company, was originally a glass manufacturer.Over time, it became one of the world’s largest coatings companies and began serving sectors such as automotive, aviation, and packaging.
The company even prefers to call its products “coatings” rather than simply paints. The solutions may combine a primer to adhere to steel, a functional protective layer, and a final finish.
AI expansion faces obstacles
Despite the positive prospects, market growth is not guaranteed. Some data center projects have experienced delays while awaiting access to power, according to PPG. The shortage of transformers and other electrical equipment has also prolonged construction schedules.
In addition, community resistance to the installation of new developments has become a challenge for the industry. PPG estimates that coatings intended for data centers still represent a small share of its sales, but it expects this market to grow several times faster than other infrastructure segments.
The expansion of AI therefore drives not only companies that develop models or manufacture chips. It also creates opportunities for suppliers of materials and components essential to the construction and operation of the enormous buildings that support this technology.
Rodrigo Mozelli is a journalist graduated from São Paulo Methodist University (UMESP) and is currently a reporter at Olhar Digital.
