The global surge in artificial intelligence and cloud computing is driving a significant rise in copper prices, according to recent market analyses.
Reports from the Qatar Financial Centre (QFC) indicate that the demand for data centers will push prices higher through 2026. This follows a period where post-pandemic recovery and the energy transition were the primary price drivers.
Short-term market pressures include production disruptions at major mining operations, resulting in a refined copper deficit of approximately 330,000 tons. Low inventory levels and international trade tensions further tighten the market.
The AI-driven demand surge
Large-scale tech firms like Alphabet and Nvidia are central to this shift. As AI expands, the infrastructure required to power these technologies relies heavily on copper's thermal and electrical conductivity.
An S&P report suggests that the development of AI and the defense sector could increase demand by 50% by 2040. In a worst-case scenario, the industry could face a deficit of up to 10 million tons if new mining projects fail to materialize.
Data centers alone could see their share of U.S. electricity demand jump from 5% to 14% in the coming years. Copper remains indispensable for the high-efficiency cooling and power distribution systems used within server racks.
“The importance of copper has been manifested in the last five years, as several countries have considered it a critical metal, including the United States in 2025,” the S&P study noted. The report emphasized that copper serves as the essential link between physical machinery, digital intelligence, and communications infrastructure.
Longer-term price stability faces variables such as the global green transition and the mass adoption of electric vehicles. However, risks like a potential slowdown in Chinese demand, global recession fears, and political instability in supplier nations could offset these gains.