Copper Price Volatility Hits Asia-Pacific Data Centres Amid Tight Supplies

The copper market's price volatility is having a significant impact on data centre developers in Asia-Pacific, particularly those in North-east Asia. According to Alexander Kheder, technology, media and telecommunications analyst at financial research firm BMI, China produces around 60% of the world's refined copper. This concentration of production means that North-east Asia is more exposed to price fluctuations than other regions.

The region's relatively inefficient power grids require larger amounts of copper for infrastructure, making the metal a crucial component in data centre development. Soaring copper prices are unlikely to derail the expansion of artificial intelligence-driven data centres, analysts say, but tightening supplies could lengthen procurement times and delay new capacity coming online.