As artificial intelligence and data centres continue to take over the world, these are emerging as the largest users of copper as well. According to Sanjiv Kumar Singh, chief managing director of Hindustan Copper, artificial intelligence has surprisingly become the single largest consumer of copper, a fact that “very few people know.”
While it is well known that electric vehicles, wires, rods, and machines are major sources of demand for copper, a single AI data center consumes close to 28 to 30 tonnes of copper. This new demand driver is playing a significant role in keeping copper prices stable, according to him.
Beyond the influence of AI, Singh notes that global copper deposits and mines have increased over the last five years, which will help to improve the grade of copper available as well.
On a more local level, Singh said Hindustan Copper has reopened some mines in Jharkhand that were closed since 2001. Reopening these mines will immediately add to the company’s production, contributing to overall supply.
