Copper demand jumps with AI
Analysts say AI data‑centre buildouts will add roughly 110,000 tonnes of copper demand in 2026, a sharp increase tied to heavier electrical and power-distribution needs in modern facilities. Markets commentary frames this as part of a “triple demand” squeeze alongside defence spending and tariffs. (markets.financialcontent.com)
Artificial intelligence data centres are turning copper into a bigger bottleneck, with J.P. Morgan projecting data-centre demand will reach 475,000 metric tons in 2026. (jpmorgan.com) That would be an increase of about 110,000 metric tons from 2025 levels, according to J.P. Morgan’s 2026 copper outlook. The bank said the jump comes as newer facilities use more copper in power distribution, grounding and cooling systems. (jpmorgan.com) Copper is the metal that carries electricity through cables, busbars and transformers, so bigger computing clusters need more of it before a single artificial intelligence model runs. BHP said copper sits across the wiring, power equipment and cooling hardware that support data-centre expansion. (bhp.com) The newer artificial intelligence sites are heavier users than older server farms because they pack in more power-hungry chips and denser racks. MarketMinute said these facilities can require 30 to 47 metric tons of copper per megawatt for cooling systems and power distribution. (markets.financialcontent.com) This demand is landing in a market that J.P. Morgan already expects to run a refined-copper deficit of about 330,000 metric tons in 2026. The bank said copper prices have risen more than 20% since the start of 2025 as supply stayed tight. (jpmorgan.com) S&P Global said copper demand is now being pulled by electrification, digitalization, electric vehicles, defense and data centres at the same time. Its January 2026 report framed artificial intelligence as one part of a broader competition for the same metal across the economy. (spglobal.com) Analysts and market commentary have started describing that pileup as a “triple demand” squeeze from artificial intelligence, defense spending and tariffs. MarketMinute said benchmark copper on the London Metal Exchange was hovering near $12,630 per metric ton in the week of April 13, 2026. (markets.financialcontent.com) The longer-term forecasts are larger still. S&P Global said artificial intelligence, data centres and other digital infrastructure are part of a copper-demand shift running through 2040, while Forbes, citing S&P Global analysis, said data centres could consume more than 500,000 metric tons a year by 2030. (spglobal.com) (forbes.com) The immediate question is whether mines, smelters and refiners can add supply fast enough to keep up with the wiring needs of the artificial intelligence buildout. For 2026, J.P. Morgan’s numbers suggest the new demand is arriving faster than the copper market can easily absorb. (jpmorgan.com)
