The increasing demand for copper is driven by the expansion of data centres and green energy infrastructure. AI systems require extensive data centres, which consume significant power and necessitate resilient infrastructure, leading to a surge in copper demand. The construction of data centres has doubled in recent years, with major players investing heavily to stay ahead.
Analysts predict a substantial rise in copper demand from AI data centres, potentially reaching 400,000 metric tons annually over the next decade. Peak demand could hit 572,000 tons around 2028, with cumulative usage exceeding 4.3 million tons by 2035. By 2050, data centres could consume 3 million tonnes of copper annually, a six-fold increase from current levels. This escalating demand, coupled with constrained supply and long development timelines for new mines, may lead to a potential supply shortfall.
This surge in demand is transforming copper from a cyclical industrial metal to a critical component in AI and clean energy. The convergence of these demand drivers is putting pressure on the copper market, with potential price increases.
