According to a new BloombergNEF (BNEF) report, the rapid construction of artificial intelligence (AI) data centers may further tighten the global copper supply market, with the supply deficit expected to widen to 6 million tonnes by 2035.
AI data centers are “copper-hungry giants,” accounting for nearly 6% of project capital expenditure. Microsoft’s $500 million data center project in Chicago alone consumed 2,177 tonnes of copper during construction. North America’s data center infrastructure is projected to expand from $33 billion in 2020 to $70 billion in 2030 and reach $185 billion by 2040.
The rapid development of artificial intelligence (AI) and machine learning (ML) is driving an explosive growth period for data centers. As a critical material, copper demand will surge accordingly. BNEF analysts indicate that data centers’ accumulative copper consumption will exceed 4.3 million tonnes over the next decade, while copper usage in other sectors like power transmission and wind energy is also expected to double by 2035.
However, years of underinvestment in new copper mining projects have exacerbated supply pressures. Supply capacity from major global copper producers like Chile and the Democratic Republic of Congo (DRC) is constrained and struggles to match rapidly expanding demand. By 2035, global copper supply is projected at only 29 million tonnes, significantly below the required 35 million tonnes.
BNEF forecasts that copper prices could peak at $13,500 per tonne in 2028 as demand accelerates while supply lags. At the end of July, copper prices plunged 20% following US President Donald Trump’s tariff announcement, trading at $4.49 per pound on the afternoon of August 13th.
