Arcturus raises $8.5M for laser-treated metals to cut data center energy loss

Reducing physical resistance in conductive metals addresses the primary thermal bottleneck in high-density infrastructure. For data centers, halving heat loss from busbars and cooling loops translates directly into lower power usage effectiveness (PUE) scores and reduced water consumption for cooling. As AI workloads push rack densities toward 100kW, traditional copper reaches its thermal limit; Arcturus offers a way to increase power throughput without expanding physical footprints or migrating to more expensive materials. This technology bridges the gap between surging compute demand and a strained electrical grid. Watch for performance data from upcoming bench tests of 10-meter wire samples in electric motor configurations.

The commercialization of advanced conductive materials arrives as data center electricity demand faces a critical supply-side squeeze. According to Gartner reports from June 2026, global data center energy consumption is projected to reach 565 terawatt-hours (TWh) this year, representing a 26% year-over-year increase driven by hardware-intensive AI training and inference. By 2027, AI-optimized servers are expected to surpass conventional servers in total power usage, placing unprecedented strain skip on internal distribution systems like busbars and cold plates.

Simultaneously, the raw materials market is shifting due to extreme price volatility and scarcity in the copper sector. Per Reuters (June 2026), major industrial players including BMW and Ferrari have accelerated a transition from copper to aluminum wiring to mitigate costs, despite aluminum's higher electrical resistance. This substitution trend is projected to impact roughly 2% of global copper demand within the current year. Arcturus’ ability to enhance the conductivity of aluminum via laser-nanomaterial infusion could provide an alternative for operators caught between high copper prices and the performance trade-offs of standard aluminum.

Investment into grid-scale efficiency technologies has likewise intensified. Per Canary Media (January 2026), global capital flows into the energy transition hit $2.3 trillion in 2025, with grid investment accounting for approximately $483 billion. While the majority of this capital has historically targeted capacity buildouts like solar and wind, the 2026 investment landscape is pivoting toward 'innovation-to-infrastructure' strategies. Firms like Tidir are launching billion-dollar funds specifically to de-risk technical breakthroughs in material science that optimize existing hardware, as the physical limits of standard 99.9% pure ETP (Electrolytic Tough Pitch) copper become a primary limiting factor for hyperscale growth.