AI-Driven Materials Boom Ignites New Spending Cycle for Copper and Construction Companies

The AI boom is transforming industries across sectors, but its impact on materials companies is often overlooked. According to John Kratochwil, Senior Analyst at AGF Management Ltd., 'AI isn't just a software revolution, it's also an infrastructure revolution.' This shift towards physical infrastructure has significant implications for the materials landscape.

Data centres, which require power infrastructure, electrical equipment, cooling systems, and raw materials like copper, aluminum, and steel, are being built at an unprecedented rate. Copper prices have risen due to supply constraints, while gold prices increased early in 2026 amid geopolitical turbulence. Steel and aluminum benefited from disruptions caused by issues in the Middle East.

This buildout of data centres is igniting a new spending cycle for copper-exposed businesses and companies that produce construction materials and chemicals enabling next-generation technology. Classic metrics like production growth, unit costs, and operating leverage still matter, but new questions are becoming increasingly relevant: Does the company own a bottleneck asset? Is the company's product of strategic importance? What is the jurisdictional risk associated with where the company operates?