Copper Prices Soar as Data Center Boom Drives Industrial Demand

The price of copper has surged nearly 50% over the past 12 months, its strongest rolling annual advance since 2021. The metal is testing all-time highs after reaching $6.52 per pound on Monday, trading just 2% below May's record high.

Copper is often referred to as 'Doctor Copper' because it tends to predict economic trends before economists do. Its price is closely tied to global demand for the metal, which is used in a wide range of industrial applications, including wiring, motors, and data centers.

Data center construction is driving copper demand higher, with an estimated 500,000 tons embedded in data centers by 2026, according to Kpler estimates. This growth is outpacing global copper demand growth of around 450,000 tons this year.

The AI boom is fueling the construction boom, as hyperscalers like Amazon, Alphabet, Microsoft, Meta, Oracle, and SpaceX pour capital into physical infrastructure. The International Energy Agency reports that average ore grades have fallen 40% since 1991, while only 5% of copper deposits discovered in the past 35 years were found in the last decade.