Copper in the Age of AI: Understanding the Surge in Demand

Copper plays an indispensable role in supporting the rapid expansion of data centres worldwide, which are at the forefront of harnessing cutting-edge technologies like artificial intelligence (AI) and generative AI (GenAI). This blog delves into the significance of copper in this booming field and explores the increasing influence that AI and data centres are poised to have on global copper demand.

The advent of AI and GenAI tools is revolutionising the way we work, create, and communicate. While AI-powered voice assistants have become household staples among consumers, a notable shift is occurring within large enterprises that are increasingly turning to AI to address complex business challenges.

The reasons behind this trend are clear and compelling. These innovative AI applications promise substantial efficiency improvements in our professional tasks, enhance our ability to manage daily activities and foster the exploration and development of groundbreaking ideas. However, the capabilities of these tools are fundamentally reliant on the processing power that underpins them. In this dynamic, while AI might serve as the intellectual powerhouse, it is the data centres that provide the essential physical support.

To function effectively, AI-powered tools necessitate extremely rapid data processing, as well as robust data storage and retrieval capabilities. These requirements are crucial for the resource-intensive training and development of intricate machine learning models and algorithms. Over the last decade, the construction of data centres has surged to accommodate the rising demand for digital solutions and cloud computing services. Notably, in the past two years alone, construction activities have doubled in the United States, driven by significant investments from industry giants such as Amazon and Microsoft, all vying to stay ahead in a rapidly evolving AI landscape.

So, what role does copper play in this intricate framework? Data centres demand substantial quantities of copper in their infrastructure, particularly for power networks, circuit boards, and cooling systems. An insightful study of Microsoft’s impressive $500 million data centre facility located in Chicago revealed that it consumed an astonishing 2,177 tonnes of copper—equivalent to 27 tonnes of copper for every megawatt of power utilized.

Furthermore, data centres require a significant power supply to operate efficiently. The generation of this power, alongside its transmission to the data centres, relies heavily on copper. This means that copper is not only vital for the physical construction of data centres, but it also plays a crucial role in the facilities that generate power for these centres, as well as in the infrastructure that delivers this energy. As investments in data centre construction continue to skyrocket, copper is emerging as a crucial demand driver in the global market.

Why is Copper Essential to Data Centres?

Copper is integral to various components within a data centre, including:

• The wiring, busbars, and power connectors found in the servers themselves.
• The cooling systems that ensure optimal operating temperatures for the servers as well as the data centre environment.
• The transmission cables and power connections that facilitate the delivery of electricity throughout the data centre.
• The external cabling necessary to bring power to the data centre from the grid.

As data centres expand and technology evolves, the importance of copper becomes ever more pronounced, underpinning the infrastructure that supports today’s digital revolution.