Copper cliff: AI's looming metal crisis

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Artificial intelligence is fueling a new surge in copper demand.

As AI scales up, data centers are expanding and need large amounts of copper to power servers, cooling systems and connect to the grid.

But growth is hitting a wall.

Copper mine production is nearing its limit, and opening a new mine can take more than a decade.

Even with recycling, there is still a big gap. And costs are rising, too.

Higher power prices and lengthy permitting processes are slowing new projects and pushing production costs higher, tightening supply even further.

Copper production is not evenly spread around the world. A small number of countries control most of it, with China dominating processing and trade.

That concentration adds risk and pressure to the already strained global supply chain.

The market is already feeling an impact. Copper’s record rally marks more than a price cycle -- it underscores a structural shift.

Unless new capacity, policy clarity and investment align, copper’s role as an enabler of digital and energy transformation may also become its most critical constraint.