AI-Fueled Copper Demand Powers Record Prices
Copper prices have reached fresh record highs on the LME and Comex markets, driven in part by the rapid growth of data centre construction to support AI hyperscalers. This trend is expected to continue, according to Hedley Widdup of Lion Selection Group, who described it as a 'genuine race to secure supply.'
The expansion of data centres requires large quantities of copper for every megawatt of power, making up a significant portion of the overall construction cost. As a result, experts are calling this a major driver of copper demand and potentially a new commodity supercycle.
Widdup's Lion Mining Clock suggests that we are at the early stages of a boom, with AI-driven demand pushing copper prices to record levels. He noted that delays in delivery risk competitors finishing first, creating an arms race for supply.