Copper Demand Surges as AI Industry Drives Up Global Consumption

Copper has been an essential material for humans for thousands of years, used in tools, weapons, and ornaments from the Stone Age to the Electrical Age. However, with the rise of the AI era, copper has become increasingly crucial as a vital component in data centers that host AI models.

AI requires massive amounts of electricity, which means data centers need an enormous amount of copper for servers, cables, and power distribution equipment. According to estimates by the International Energy Agency (IEA), global data centers consumed 415 billion kWh of electricity in 2024, accounting for about 1.5% of global electricity consumption.

A study released this year found that among the 20 minerals estimated to be demanded by AI data centers by 2035, copper accounts for approximately 83% of the total mass. The IEA also predicts that global refined copper market supply may fall short of demand by 2035, with a potential shortage of about 25%.

Copper is widely used in power systems due to its excellent electrical conductivity and corrosion resistance. However, the rapid expansion of data centers has created a significant increase in copper demand, which may not be met by current supply. To mitigate this issue, copper recycling can play an important role in reducing waste and conserving resources.

As AI continues to advance, it is essential to consider the growing demand for copper and explore strategies to ensure a stable supply chain. This includes expanding copper deposits, improving efficiency in mining and processing, and promoting recycling practices.