(Ecofin Agency) - Copper is essential for building and operating data centers, which are expanding rapidly due to the rise of artificial intelligence (AI). This increased demand for copper adds to the already growing needs related to the energy transition.

BHP, the mining giant, has projected that global copper demand will surge to 50 million tonnes by 2050, a significant increase from the current 32 million tonnes. The firm unveiled the forecast while disclosing its half-year results on February 18, 2025. According to BHP, data centers will significantly contribute to the surge. It anticipates the centers’ copper demand to grow 500%, from 500,000 tonnes now to 3 million tonnes in 2050.

Copper is crucial for various components of data centers, including electrical networks, printed circuit boards, and cooling systems. These facilities are vital for supporting AI infrastructure. Bloomberg Intelligence noted that AI could contribute to a 3% annual increase in copper demand in North America alone by 2035.

Consulting firm McKinsey predicts that global demand for data center capacity may grow between 19% and 22% annually from 2023 to 2030. By the end of this decade, this could mean an annual capacity demand of between 171 to 219 gigawatts.

The rising digital sector demand raises concerns about potential copper shortages. Analysts warn that mining production may not keep up with this demand due to current low copper prices, which deter investment in exploration and new mines. 

BHP has stated that for future mine supply to be stimulated, prices must rise above those recorded in the first half of fiscal 2025 to incentivize investment. However, the firm did not indicate what price would be favorable for new mining operations.

Copper prices fell to $8,700 per tonne on the London Metal Exchange at the end of December 2024 after peaking at around $11,000 per tonne last May. A rise in copper prices could benefit producer countries like the Democratic Republic of Congo and Zambia, Africa’s top producers.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho