The infrastructure supporting AI workloads represents a significant paradigm shift from that of traditional data centers. While both types of facilities house similar components like servers and networking equipment, the "extraordinary demands of high-intensity AI workloads" necessitate a completely different design philosophy. AI-ready data centers require high-performance graphics processing units (GPUs) and a far more robust, high-density infrastructure to handle their computational needs. The scale is unprecedented: a single hyperscale facility typically contains at least 5,000 servers and occupies a minimum of 10,000 square feet. This massive buildout is led by cloud giants such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), which collectively account for 60% of all hyperscale data center capacity.
This shift to high-performance infrastructure establishes a direct correlation between power density and copper intensity. AI workloads consume significantly more power per rack than legacy IT environments, requiring thicker, more extensive, and more robust electrical infrastructure to manage the load. For example, a single AI training workload can demand approximately 30 megawatts of continuous power. This contrasts sharply with the demands of a traditional facility. The direct link between power and copper is profound: the Goldman Sachs projection of a 165% increase in data center power demand by 2030 serves as a direct proxy for a massive, structural increase in copper demand. This is not a linear increase but a step-change driven by the fundamental physics of electricity and thermal management. A case study of a Microsoft data center from 2009 showed that it used about 2,177 tonnes of copper, which equates to roughly 27 tonnes per megawatt of power capacity. With AI-ready racks increasing power needs substantially, the per-site copper footprint is growing exponentially.
The copper demand from an AI data center is interwoven into every layer of its infrastructure, a reliance driven by the metal's unmatched electrical and thermal conductivity. Copper is the material of choice for power cables, busbars, power distribution strips, connectors, and transformers. Its superior conductivity ensures efficient power transmission with minimal energy loss, which is essential for powering high-density server racks.
AI-intensive servers generate substantial heat, making advanced cooling infrastructure non-negotiable. Copper's high thermal conductivity makes it vital for components like heat exchangers, heat sinks, and liquid cooling systems that dissipate this heat, preventing equipment from overheating and extending its longevity. The liquid cooling industry strictly avoids mixing copper and aluminum to prevent galvanic corrosion, further reinforcing the reliance on all-copper components for these critical systems.
While fiber optics is used for long-haul backbones, copper remains essential for high-speed interconnects within the data center, local delivery (the "last mile"), and grounding systems. It is prized for its reliability, cost-effectiveness, and ability to be shaped into compact connectors for space-optimized server rooms. The shift to high-density AI racks initiates a cascading effect on material requirements. Increased power per rack leads to higher heat output, which necessitates more sophisticated, copper-based liquid cooling systems. These systems, in turn, require copper in their components. This creates a reinforcing feedback loop of demand: higher power consumption leads to more copper for power systems, which in turn leads to more copper for cooling, which requires more copper for the components of those cooling systems. The design of these facilities is pushing the physical limits of materials, making copper's properties indispensable.
The copper demand story is not confined to the physical footprint of the data center itself but extends to the infrastructure required to deliver electricity to the site. Analysts note that while data centers may be "incrementally less copper-intensive" internally due to design efficiencies, "getting the electricity to them, that is copper-intensive". The scale of new AI hyperscale campuses, which require continuous, high-volume power, is forcing a fundamental rethinking of grid infrastructure. The need for uninterrupted power and redundancy means these facilities require extensive new transmission lines, substations, and grid upgrades—all of which are packed with copper. A single new AI-ready site can lock in thousands of tonnes of copper for decades.
This extends copper demand far beyond the facility's walls, creating a system-wide demand that is geographically dispersed but directly tied to AI growth. For example, the total capital expenditure for global data center power infrastructure could reach trillions of dollars by 2030, with critical minerals like copper accounting for a significant portion of that investment. This dynamic means the copper crunch is not merely about data center components; it is about the entire electrical grid that supports the digital revolution.
The geographic distribution of hyperscale data centers is undergoing a notable evolution. The United States continues to dominate this sector, hosting 51% of the world's hyperscale AI data centers. Primary hubs include Northern Virginia, Dallas, Silicon Valley, and Phoenix, which have historically attracted investment. However, power constraints in these established markets are now a major driver, forcing expansion into secondary markets such as Columbus, Ohio, San Antonio, Texas, and the Raleigh-Durham area of North Carolina.
Internationally, data center growth is accelerating rapidly. The Asia-Pacific region, fueled by AI initiatives and digital sovereignty needs, is projected to more than double its capacity over the next five years. This expansion is supported by China's $100 billion "New Infrastructure" plan, which is concentrating on key hubs like Shanghai, Beijing, and Shenzhen. In Europe, the long-established FLAPD markets (Frankfurt, London, Amsterdam, Paris, and Dublin) are showing signs of maturation, with growth now accelerating in new hubs like Oslo, Helsinki, and Berlin. These locations are becoming increasingly attractive due to a combination of streamlined regulatory environments and the availability of renewable energy sources. The Middle East is also emerging as a major player, with countries like the UAE attracting a substantial $20 billion in hyperscale data center investments due to their competitive digital economies.
Production challenges in key copper-producing nations are exacerbating the global supply deficit. In Chile, the world’s largest copper producer, there has been a downward revision of the 2025 production growth estimate. This decline is attributed to various factors, including aging infrastructure, decreasing ore grades, water scarcity issues, and safety incidents, such as the recent collapse of the Codelco El Teniente mine. Notably, the gradual decline in the quality of Chile's copper resources is concerning; average ore grades have plummeted by 40% since 1990. As ore grades decrease, more raw material is required to extract the same amount of copper, resulting in increased costs and greater energy consumption.
Peru, the third-largest copper producer, faces its own set of challenges, including persistent social conflicts, labor disputes, and transportation issues. Notably, blockades by informal miners can disrupt critical transportation routes, as illustrated by recent events at the Las Bambas mine. This situation underscores the vulnerability of Peru’s supply chain to local instability.
In the United States, the Resolution Copper mine project in Arizona, which would become one of the country's largest copper sources, is currently mired in significant delays due to an ongoing legal battle. A federal appeals court has issued a temporary restraining order on the land transfer needed for the project, which threatens a site that is sacred to the Western Apache tribe. This case highlights the social, legal, and regulatory hurdles that contribute to extended project development timelines, which have even garnered political attention, with figures like President Trump calling for an immediate need for copper in the country.
The rise of AI data centers adds yet another powerful demand driver to an already tightening copper market, amplifying risks for industries and economies worldwide. This is a structural challenge, not a cyclical one, requiring a long-term strategic response. The report's analysis indicates that the "perfect storm" of converging demands, coupled with a supply chain constrained by years of underinvestment and operational challenges, has set the stage for sustained copper deficits and elevated prices. To counter these vulnerabilities and ensure stable access to high-quality copper resources, companies like Quest Metals are emerging as key players in securing diversified and sustainable mineral supply chains.