GCC Copper Demand Set to Surge as Data Centres and Power Infrastructure Drive Growth

UBS has forecasted a significant increase in copper demand from the Gulf Cooperation Council (GCC) region due to investments in data centres, power infrastructure, and electrification. According to the financial services firm, the GCC's expanding infrastructure and energy transition initiatives will drive growth in copper consumption.

The report highlights that artificial intelligence (AI)-led investments in data centres will add to 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 around 900 kilotonnes (kt) in 2025, rising at an annual growth rate of about 11 per cent to nearly 1.55 million tonnes by 2030.

UBS also notes that AI-driven hyperscale data centres are more copper-intensive due to higher electrical and cooling requirements, increasing demand for busbars, transformers, switchgear, and other electrical equipment. Beyond data centres, expanding electricity generation, transmission, and distribution infrastructure will provide another important source of copper consumption.

The report concludes that UBS remains structurally positive on the fundamental outlook for copper and believes this will support elevated prices in the coming years.