"However, a study by financial analyst S&P Global estimates that worldwide production of the metal will peak in 2030 at 33 million metric tons, while demand is forecast to continue growing to reach 42 million metric tons by 2040 - a 50 percent increase from current levels, creating a supply shortfall of about 10 million metric tons without meaningful expansion."
"Primary supply from mining copper faces declining ore grades, rising costs, and increasingly complex extraction. Bringing new mines into use also involves long timescales, averaging 17 years. Another report last year from PricewaterhouseCoopers (PwC) suggested that climate change threatens copper mines, which require steady water supplies but are often located in drought-risk regions. Secondary supply from recycled sources can't close the gap, S&P says."
"The result? Soaring copper prices, making electrical goods and IT kit costlier to produce. The metal already hit a historical high of $5.84 per pound in late 2025, according to some sources. Although S&P labels its report " Copper in the Age of AI," the datacenter boom is not the largest consumer. Instead, core economic demand - domestic electrification worldwide, including in developing countries - leads the charge."
Worldwide copper production is expected to peak in 2030 at about 33 million metric tons while demand is projected to rise to roughly 42 million metric tons by 2040, creating a supply shortfall of about 10 million metric tons. Electrification of industry, electric vehicles, renewable generation, and expanding transmission infrastructure are major drivers of rising copper demand. Datacenter and AI infrastructure add pressure but are not the largest consumer. Copper prices have already reached record highs, increasing production costs for electrical and IT equipment. Mining faces declining ore grades, higher costs, and long lead times to open new mines, averaging 17 years. Climate risks and limited recycling capacity further constrain supply.
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