Data Centers Fuel Demand for Copper and Construction Materials
Spending on AI data centers is skyrocketing, and it's creating opportunities for companies that provide raw materials used in construction. According to S&P Global's report 'Copper in the age of AI', AI and data centers will contribute 13.7% of total copper demand growth from 2025 to 2030.
Copper is essential for building data centers, as it's needed for creating and transmitting power within them. The forecast 18% increase in copper demand from 2025 to 2030 implies a widening gap between demand and supply, with demand expected to exceed supply by 10.1 million tons by 2040.
Freeport-McMoRan, a copper company, is well-positioned to benefit from this trend due to its ample reserves, expansion opportunities, and low-cost leaching technology.
Vulcan Materials, an aggregates company, is also seeing demand for its products increase due to data center construction. The company's CEO, Ronnie Pruitt, noted that large project opportunities continue to drive non-residential activity, particularly data centers.