GCC Copper Demand Set to Rise with AI-Driven Investments

UBS, a global financial services firm, has projected a robust medium-term outlook for copper demand. The Gulf Cooperation Council (GCC) is expected to emerge as a growing market for copper, driven by rising investments in data centres, power infrastructure, and electrification.

The report cites the GCC's expanding infrastructure and energy transition initiatives as key growth drivers. UBS notes that artificial intelligence-led investments in data centres will add to multiple long-term demand drivers for copper, including renewable energy, electric vehicles, power grids, and defence.

UBS estimates that global copper demand linked to data centres and associated power generation is expected to rise from around 900 kilotonnes (kt) in 2025 to nearly 1.55 million tonnes by 2030. Data centres and related power generation currently account for around 3% of global copper demand, increasing to about 4% by the end of the decade.

The report highlights the strategic importance of copper in AI infrastructure, noting that the metal represents a relatively small share of overall project costs but is difficult to substitute in critical electrical applications. UBS remains structurally positive on the fundamental outlook for copper and believes this will support elevated prices in the coming years.