Copper Crunch Hits AI Buildout as Nvidia Consortium Mobilizes $500B

HIVE Digital Technologies is sounding the alarm about a pressing issue in the AI infrastructure buildout: copper supply. According to Frank Holmes, HIVE's Executive Chairman, a single gigawatt-scale data center consumes around 50,000 tons of copper. With Nvidia's $500 billion memorandum of understanding to mobilize funds for AI projects, the demand for copper is set to skyrocket.

The current price of copper stands at $6.67 per pound, a 16% increase since the start of the year. Analysts from Wood Mackenzie and the International Energy Agency have flagged anticipated deficits in refined copper supply, driven by surging data center construction.

HIVE is repositioning itself from a Bitcoin mining operation to an AI and high-performance computing company. The company has signed significant deals, including a $220 million engagement for AI services and a five-year, $350 million GPU cloud agreement. A planned 320 MW Gigafactory in the Greater Toronto Area will be a major part of HIVE's infrastructure ambitions.