Copper Prices Hit Record as AI Data Centers Surged
Supply disruptions in Chile and rising AI infrastructure needs pushed global copper prices to a new high.
Updated on Oct. 6, 2026 in Data Centers
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On September 8, 2026, three-month copper on the London Metal Exchange reached a record $13,387.50 per ton. This price spike reflects a simultaneous squeeze in global mining output and high demand from hyperscale data center construction.
Why it matters
The buildout of AI infrastructure has created a non-substitutable demand for copper that is colliding with systemic supply constraints. Because new mining projects require an average of 17 years to clear regulatory hurdles, supply cannot rapidly scale to meet this specific industrial growth.
A 100-megawatt hyperscale data center requires approximately 4,700 tonnes of copper for wiring and liquid cooling systems. AI-specific data centers are expected to add 110,000 tonnes of incremental annual copper demand in 2026.
The players
London Metal Exchange
The global marketplace for industrial metals that sets the benchmark pricing for copper.
BHP
A major global resources company that suspended operations at the Escondida mine following a worker fatality.
Citigroup
A financial services institution that tracks commodity markets and has issued a $15,000 per ton copper price target for late 2026.
The details
Copper is essential for data centers because of its high electrical conductivity and thermal management capabilities. AI systems utilize liquid cooling—a method of transferring heat away from server components using a circulating fluid—which relies on copper piping and heat exchangers to maintain optimal operating temperatures. Furthermore, massive copper wiring is required to connect high-density server racks to the power grid, a physical requirement that cannot be easily substituted with alternative materials.
Timeline
September 8, 2026: Copper prices touched a record $13,387.50 per ton.
January 2026: S&P Global released its report on AI copper demand.
2026: AI data centers began adding 110,000 tonnes of incremental demand.
2030s: Projected timeline for initial impacts from new mine development investments.
2040: Global copper demand is projected to reach 42 million tonnes.
The Tech Race
This development marks a significant acceleration in the competition for raw materials necessary to support the 47-gigawatt projected capacity of AI data centers by 2030. The record price action highlights the supply vulnerability of the global hardware stack as it attempts to scale to meet AI-driven demand.
The rising cost of raw copper is expected to influence the capital expenditure budgets of data center operators and hardware manufacturers. Companies will need to monitor the Citigroup price target of $15,000 per ton as they plan long-term facility expansions through 2026.
The takeaway
The copper supply crunch highlights a physical bottleneck in the growth of AI infrastructure that cannot be solved by software optimizations. Investors and industry leaders should watch for labor resolution outcomes in Chile, which remains the source of roughly 25% of the world's mined copper.
Further reading
Learn more about the infrastructure challenges facing the industry at /tech/data-centers/.
Source note: This article includes information reported by Startup Fortune.
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