Copper Prices Surge as Supply Disruptions Meet Data Center Boom

Copper prices have surged over the past year due to global supply disruptions and accelerating demand from data centers and power infrastructure. The metal's central role in electrical infrastructure has made it a significant consideration for construction firms, which are already seeing increased costs.

The U.S.-Iran hostilities have disrupted copper supplies through the Strait of Hormuz shipping lanes, pushing up crude oil prices and making mining and smelting more expensive. Shipping disruptions have also cut off flows of copper and related materials moving through the Middle East.

Copper prices have risen nearly 30% over the past year, far outpacing broader construction material costs. The Producer Price Index (PPI) tracked by the Bureau of Labor Statistics shows that copper prices are up 29.7% from June 2025 to June 2026, compared to a 9% rise in overall construction materials inflation.

The increase is largely driven by soaring power infrastructure demand, which has grown over 400% from 2021 to 2025 amid data center growth and broader electrification. This surge in demand for copper-intensive components has amplified the pressure on prices.