Google’s $25B AI Infrastructure Push: Will this Supercharge U.S. Demand for Heavy Rare Earths?

Highlights

• Google announces $25 billion investment in data centers and AI infrastructure across the largest U.S. electric grid.
• Investment highlights critical mineral demand, especially rare earth magnets essential for AI and data center technologies.
• U.S. faces strategic challenges in rare earth refining, with ReElement Technologies positioning as a potential domestic solution.

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Alphabet’s Google has announced a $25 billion investment over two years to build out data centers and artificial intelligence (AI) infrastructure across the PJM Interconnection, the largest electric grid in the United States. The spending—centered on high-density computing and energy modernization—signals an inflection point in critical mineral demand, particularly magnet rare earths like Nd, Pr, Dy, and Tb, essential for data center cooling systems, robotics, power converters, and AI-optimized servers.

The announcement came alongside news of a $3 billion hydroelectric upgrade in Pennsylvania, and a landmark 3,000 MW power purchase agreement with Brookfield Asset Management, indicating that both energy and tech sectors are preparing for unprecedented scaling in hardware-intensive AI infrastructure.

Notably, this surge in AI infrastructure will require substantial quantities of permanent magnets and heavy rare-earth oxides (HREOs). As China continues to dominate global HREO refining, the U.S. remains dangerously exposed, with few domestic HREO refiners. Indiana-based ReElement Technologies (opens in a new tab) (a subsidiary of American Resources Corporation (opens in a new tab) (NASDAQ: AREC) positions itself as the only U.S. refiner of HREOs at China-competitive prices.  The firm is ramping up a pilot-to-commercial scale capability, but it’s unclear to REEx whether price points can match those in China.  REEx interviews AREC this afternoon, so we will hopefully get more clarity.

Why This Matters for Investors

• AI + Data Center Boom = More Rare Earth Magnets
  

  Every AI server and cooling system draws on materials like neodymium, dysprosium, and terbium.

• U.S. Refining Bottlenecks Are Now Strategic Chokepoints
  

  With China controlling >90% of global HREO refining, supply security is a national priority.

• Does ReElement have a First-Mover Advantage?
  

  The firm’s commercial-scale capacity may draw federal and private-sector demand.

Key Questions for the Market

• Can ReElement scale fast enough to meet rising U.S. demand—or will new players emerge?
• How will federal procurement rules and incentives be structured around domestic REE sourcing?
• Could partnerships with major tech firms (like Google or Microsoft) emerge to secure rare earth supply at the source?

Source: CNBC, “Google to invest $25 billion in data centers and AI infrastructure across largest U.S. electric grid” by Spencer Kimball, July 15, 2025