Copper prices hit record highs in September 2026, driven by persistent supply constraints and surging demand from artificial intelligence infrastructure, grid expansion, and electrification. BloombergNEF research highlights that AI data centers, expanding power grids, and electric vehicles are fueling copper demand, with China also contributing significantly. The forecast predicts a supply deficit starting in 2028, widening to 20 million metric tons by 2050, which is 44% of projected global demand.
AI is emerging as a major infrastructure story, requiring substantial physical infrastructure to scale. BloombergNEF estimates that installed US data-center capacity could reach 194 gigawatts by 2035, an 83% increase from its December 2025 forecast. This growth in data centers necessitates more copper for power infrastructure, adding to demand from electric vehicles and broader electrification.
Supply expansion faces challenges, as new copper mines take years to develop. Max Layton, Global Head of Commodities Research, notes that few new copper mines have been discovered in the last five years. He also connects copper demand directly to investment in AI, particularly between the US and China. Recycling could become a more important source of supply, but Layton warns that extracting more scrap will be costly.
Beyond AI, electric vehicles, renewable energy, and grid expansion are increasing demand for industrial metals. Geopolitical shifts and economic security concerns are also broadening the demand story. Copper is now linked to investment in technology, power infrastructure, and supply-chain resilience, changing its economic significance over time.