Copper prices surge 35% in a year as AI data centers drive demand for the metal

The spot price of copper has increased from about $486 per pound one year ago to around $656 a pound today, a 35% increase. AI data centers can require up to 50,000 tons of copper per facility, compared with 5,000 to 15,000 tons for traditional data centers, according to the Copper Development Association.

Copper is essential to AI data centers because of its superior conductivity for high-speed data transmission and its role in liquid-cooling systems and heat exchangers needed to dissipate intense heat. Global data center electricity consumption is expected to rise from 2% of global demand today to 9% by 2050, with demand for copper in those facilities expected to increase sixfold.

Companies worldwide spent almost $1 trillion on data centers last year, projected to reach $4 trillion by 2030. Data center capital expenditures are expected to rise 3.7% next year over the 2026 level, with this forecast continuing to be revised higher.