Global Copper Shortage and How AI Is Involved

The global copper market has encountered an unexpected shortage caused by the construction of data centers for AI. Artificial intelligence infrastructure requires large amounts of copper; at the same time, we are seeing increased demand against the backdrop of a slowdown in overall mining. As a result, copper is becoming a critical resource around which a shortage is now forming.

Why Is Demand for Copper Growing?

A noticeable shortage of refined copper will become more evident as early as 2025, according to analysts at Wood Mackenzie, reaching 304 thousand tons. Forecasts by the International Energy Agency claim that current production capacity will be sufficient to cover only 70% of the expected demand.

These dynamics can be explained by the significant copper requirements of AI infrastructure: each megawatt of installed capacity in an AI campus requires approximately 27–33 tons of copper. To better understand this, a large 100 MW data center can consume several thousand tons of copper.

Obstacles to Mining

The problem is exacerbated by the fact that many old copper deposits are showing a decline in ore quality by almost half compared to 1991, as well as an overall decrease in extraction volumes. Therefore, companies must either invest in restoring old mines or in developing new ones, facing challenges with permits and regulatory documentation in this sector.

These issues have already led to copper prices rising to $11,000 per ton, and they continue to climb. The market is seeking ways to overcome these obstacles through metal recycling and stock replenishment, but the construction of new smelting capacities is being slowed by high costs and the complexity of obtaining permits.