Copper Prices Soar on AI Data Center Demand

Copper prices have been surging since late 2023 due to growing demand from AI hyperscalers building data centers, coupled with supply that can't keep pace.

The massive investment into AI data centers is driving copper demand, as each facility requires a significant amount of the metal for wiring and electrical components. According to the Copper Development Association, a traditional data center requires between 5,000 and 15,000 tons of copper, while AI data centers can need up to 50,000 tons.

After peaking at an all-time high of $6.68 per pound in May, copper prices dropped slightly but have been rebounding strongly since then. As of now, the price is back at $6.62 a pound and climbing.