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| FabArc Steel Supply DataBank ATL 5 |
Surge in Fabricated Steel Projects Driving Scrap Steel Market Momentum
FabArc Steel Supply Inc. has completed the steel framework for DataBank ATL 5, a 48-MW hyperscale data center in Georgia. The Alabama-based AISC-certified fabricator delivered over 5,000 tons of structural steel for the multistory project. This volume includes galvanized platforms and curtain wall framing, critical to data center infrastructure.
As a result, scrap steel demand in the U.S. Southeast is experiencing a measurable uptick. Projects of this scale—416,000 square feet—create downstream pressure on scrap supply, particularly in high-quality grades. The project broke ground in June 2024 and targets operational readiness by 2027. DataBank Holdings Ltd., the project owner, has emphasized the facility’s role in expanding AI and cloud computing capacity.
Increased Infrastructure Spending Boosts Regional Scrap Flows
Public and private infrastructure spending continues to stimulate demand for fabricated steel. In turn, this elevates procurement activity for prime and obsolete scrap categories. FabArc’s fabrication scope included architecturally exposed steel, demanding tight tolerances and low-residual input material. Consequently, melt shops supplying FabArc relied heavily on #1 heavy melt and shredded scrap to meet quality specs.
Meanwhile, scrap processors across Alabama and Georgia report tightening inventories. The American Metal Market (AMM) index shows a 4.2% price increase for shredded scrap month-over-month in the region. Steel mill buyers are actively sourcing from local yards to secure material amid growing fabrication orders.
Data Center Steel Builds Signal Long-Term Structural Scrap Demand
The rise of hyperscale data centers marks a structural shift in downstream steel usage. These facilities integrate significant volumes of custom-fabricated steel, including galvanized platforms and seismic-rated bracing systems. As a result, both new and demolition-based scrap supply chains must adjust to the longer-term steel intensity of such projects.
In contrast to traditional commercial builds, data centers demand higher metallurgical performance. Therefore, rebar and hot-rolled coil producers must anticipate sustained orders from fabricators like FabArc. Market analysts forecast that data center expansion in the U.S. Sun Belt will contribute to steady scrap absorption through 2030.
ScrapInsight Commentary
FabArc’s 5,000-ton steel delivery highlights the growing scrap input requirement for high-tech infrastructure builds. This trend supports bullish sentiment in prime scrap markets, particularly in the U.S. Southeast. As data center construction accelerates, policy incentives and recycling system modernization will play a critical role in scrap availability and pricing stability.
