According to UBS, copper demand from data centers is expected to increase sharply through 2030 as the rapid expansion of AI infrastructure adds another major source of consumption to an already tight market.
At the same time, the era of easily accessible, low-cost copper appears to be coming to an end. Many new deposits are located in remote regions, at extreme depths, or contain lower-grade ores, making future production increasingly expensive. New mining projects are also unlikely to fully offset the natural decline in output from existing mines, creating persistent pressure on global supply.
Copper prices have already responded to this tightening environment, recently reaching record levels of around $14,800 per tonne.
Yet the longer-term investment case goes well beyond AI. Against a backdrop of stagnating supply, copper consumption continues to rise due to the global energy transition—including renewable energy, electric vehicles and massive investment in electricity grids—while the explosive expansion of AI data centers is creating an additional source of structural demand.
We remain structurally bullish on copper over a 3–5 year investment horizon, but after the recent move to record highs we would avoid aggressively chasing the metal at current prices.
Among equities, we would favor high-quality producers with large existing reserves, relatively low production costs and the ability to expand output without relying entirely on greenfield projects. Freeport-McMoRan, BHP, Rio Tinto, Antofagasta and Lundin Mining are particularly interesting candidates for further analysis.
At the same time, the era of easily accessible, low-cost copper appears to be coming to an end. Many new deposits are located in remote regions, at extreme depths, or contain lower-grade ores, making future production increasingly expensive. New mining projects are also unlikely to fully offset the natural decline in output from existing mines, creating persistent pressure on global supply.
Copper prices have already responded to this tightening environment, recently reaching record levels of around $14,800 per tonne.
Yet the longer-term investment case goes well beyond AI. Against a backdrop of stagnating supply, copper consumption continues to rise due to the global energy transition—including renewable energy, electric vehicles and massive investment in electricity grids—while the explosive expansion of AI data centers is creating an additional source of structural demand.
We remain structurally bullish on copper over a 3–5 year investment horizon, but after the recent move to record highs we would avoid aggressively chasing the metal at current prices.
Among equities, we would favor high-quality producers with large existing reserves, relatively low production costs and the ability to expand output without relying entirely on greenfield projects. Freeport-McMoRan, BHP, Rio Tinto, Antofagasta and Lundin Mining are particularly interesting candidates for further analysis.
