Copper Surpasses Iron Ore at BHP as AI Data Centers Fuel Demand
Copper has hit fresh record highs as demand from AI data centers pushes BHP past iron ore, according to recent earnings reports. The shift is due to the growing need for copper wiring and infrastructure to support the increasing number of data centers worldwide.
BHP's copper business generated $18.19 billion in underlying EBITDA for the fiscal year, surpassing its iron ore division which brought in $14.53 billion. Copper contributed 54% of group underlying EBITDA, marking a significant change from BHP's traditional reliance on iron ore.
The demand story behind copper's rise is largely driven by data centers and their associated infrastructure needs. CRU Group estimates that AI-powered facilities will require an average of 400,000 tonnes of copper per year over the next decade, peaking at around 572,000 tonnes in 2028. This new structural buyer is putting pressure on a market that was already tight.
Other metals such as aluminum and nickel are also expected to see price increases, with the World Bank forecasting an all-time high for its base metals index in 2026 led by copper, aluminum, and tin. However, iron ore prices are projected to fall due to ample supply and weaker demand.