Copper is a critical metal for modern infrastructure, playing a central role in electricity transmission, renewable energy systems, and emerging technologies. Its superior conductivity makes it essential for wiring in electric vehicles, solar panels, wind turbines, and now increasingly in data centers that power artificial intelligence.
With the global push toward clean energy and digital expansion, demand for copper is projected to grow rapidly in both the near and long term.
A report published by the National Mining Association projects that the red metal’s consumption will rise by over 110% by 2050, with energy demand in America set to increase by close to 30% over that period. An outlook report from Fastmarkets’ analysts also expects that the consumption of the red metal from energy transition sectors to increase at a compound annual growth rate of 8.9% over the next decade.
On the other hand, demand from conventional non-energy transition industries is expected to grow at a compound annual growth rate of 1.1%. A report by Macquarie also projects that by 2030, copper demand in data centers could reach 330,000 to 420,000 tons.
So, how are growing energy needs increasing copper demand in data centers?
Adam Jotrba, the Copper Development Association’s director, explains that the red metal’s demand is being fueled by several converging factors. The primary driver is the rapid rate of new construction boosting demand, with data centers themselves depending on significant volumes of copper for power distribution and grounding.
Senior VP of the National Electrical Manufacturers Association Don Leavens adds that about 40% of construction of data centers involves electrical wiring which contains copper.
The introduction of liquid cooling technologies which depend on copper cooling plates on computer chips is also driving demand. A study carried out last year determined that about 30% of energy demand was linked to cooling.
As the adoption of artificial intelligence grows and new data centers that have been designed to handle significantly higher electrical loads come up, more copper is required to effectively conduct, deliver and ground power. With more heat comes increased demand for cooling.
From the above, we can see that collectively, accelerated capacity expansion, greater power density, and sophisticated cooling techniques are rendering copper more vital than ever to the data center sector.
This highlights the importance of not only improving recyclability in the data center industry but also increasing copper mine production to meet growing demand. Multiple mining firms are already doing this by acquiring new copper mines or scaling up operations. Exploration companies like Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) could also be perfectly positioned to benefit from this growing demand.
NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF
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