"The world will need way more compute and energy than we have today to realise the full potential of AI." - Sam Altman, CEO, OpenAI
Rising demand
From going trends, it seems AI and defence sectors may triple copper use by 2040. This demand surge happens as mine supply hits structural limits, creating a potential bottleneck for global technological expansion and economic growth.
Data centres responsible
For all their virtual intelligence creation, all data centres powering AI require massive copper for electrical systems. Additionally, a predicted billion humanoid robots could need 1.6 million tons of copper annually by 2040, further straining global mineral supplies.
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Copper production constraints
Producers struggle with declining ore quality and permitting hurdles at existing mines. Long development timelines and high costs make supply expansion difficult, leaving the market vulnerable to disruptions as global demand accelerates.
Supply gap
As per reports, BloombergNEF projects a 10 million ton supply gap by 2040. With copper prices hitting record highs in London, industries may eventually need to engineer copper out of products or seek more profitable expansion projects.
Future outlook
The energy transition and AI both depend on copper for grid expansion and hardware. Unless new mines are developed, the shortage could intensify, making the global market increasingly vulnerable to supply chain concentration.
Summary
Global copper demand from AI and defence is rising quickly as mine production hits structural limits. A 10 million ton supply gap is expected by 2040, causing record high prices in London and creating significant bottlenecks for both the energy transition and robotics.
Food for thought
Can the AI revolution survive if the physical resources required to build it remain trapped in the ground?
AI concept to learn: Data Centre Infrastructure
This refers to the hardware and power systems needed to run AI. These facilities use vast copper for electricity and cooling. This shows the material cost of digital technology. It includes servers, storage systems, networking, power supply, cooling, security, and monitoring tools. Together, these components ensure reliable, scalable, and secure processing, storage, and delivery of data for cloud services, AI, and enterprise applications.
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[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
