AI’s Hidden Bottleneck Is Not Silicon. It Is Copper.
The growing demand for AI is creating a surge in copper demand, which could become a major constraint on AI growth due to supply shortages. The US is scrambling to secure enough copper by investing in domestic mining and refining capabilities.
The AI revolution relies heavily on copper for power delivery, with data centers alone potentially consuming up to 1.1 million tonnes annually by 2030. US copper production has stagnated, leading to record-high prices and potential delays in data center projects. The Resolution Copper project in Arizona is a key initiative to address this shortage. Industry leaders are pushing for copper to be designated a critical mineral to unlock federal funding. The US is also investing in domestic refining capabilities to reduce reliance on Chinese processing. The mismatch between AI deployment velocity and minerals production reality is a core tension that needs to be addressed.
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