The U.S. must have more copper supply to meet explosive demand.
In fact, it’s the key reason copper has effectively been placed in the spotlight as a strategic material, with policymakers warning that supply vulnerabilities pose serious risks to infrastructure development, clean energy goals, and defense readiness.
And for investors, that message is loud and clear: copper is no longer just an industrial metal — it is a strategic asset. Used in everything from electric vehicles and data centers to power grids, renewable energy systems, and military hardware, copper demand is surging at a pace few commodities can match. At the same time, new supply is struggling to keep up.
Copper prices have surged, and many analysts believe this move could be just the beginning of a longer-term bull market. One of the biggest drivers behind this surge is the explosive growth of artificial intelligence infrastructure across the United States.
Massive AI data centers require extraordinary amounts of copper for power distribution, cabling, transformers, circuit boards, and cooling systems. According to BHP, a study of Microsoft’s US$500 million data center facility in Chicago found it used 2,177 tonnes of copper — equivalent to about 27 tonnes of copper for every megawatt (MW) of applied power.
That’s just one facility.
According to the International Energy Agency (IEA), hyperscale data centers typically have power demand of 100 MW or more, with annual electricity consumption equivalent to that used by roughly 350,000 to 400,000 electric cars. As more hyperscale facilities are built to support cloud computing and AI workloads, copper demand accelerates even faster.
Looking further out, the numbers become staggering.
BHP estimates that copper used in data centers globally could grow six-fold by 2050, rising from around half a million tonnes today to several million tonnes annually. At the same time, global electricity consumption from data centers could increase from roughly 2% of total demand today to as much as 9% by mid-century.
All of this puts extraordinary pressure on an already strained copper supply chain.
New copper mines take years — often more than a decade — to permit, finance, and develop. Ore grades at many existing mines are declining, meaning producers must process more material just to maintain output. Meanwhile, geopolitical risks and resource nationalism in key producing countries add further uncertainty.
Making things worse, the United States still relies heavily on foreign sources for refined copper and copper concentrates. That dependence is a major reason why copper has now been elevated to a national security concern.
For investors, this creates a powerful long-term opportunity in related ETFs such as:
Global X Copper Miners ETF (SYM: COPX)
The Global X Copper Miners ETF offers targeted exposure to companies involved in copper mining around the world. With an expense ratio of 0.65%, COPX holds about 40 copper-related companies, including Lundin Mining, Glencore, Southern Copper, BHP Group, Freeport-McMoRan, Ero Copper, and Taseko Mines.
COPX provides investors with direct leverage to rising copper prices while spreading risk across multiple producers and jurisdictions.
iShares Copper and Metals Mining ETF (SYM: ICOP)
Another diversified option is the iShares Copper and Metals Mining ETF.
With an expense ratio of 0.47%, ICOP offers exposure not only to copper miners, but also to companies producing other key industrial metals. Its holdings Newmont, Teck Resources, along with BHP Group, Freeport-McMoRan, and Lundin Mining.
The bottom line: copper is entering a new era of strategic importance. With demand exploding from electrification, AI infrastructure, and grid expansion — and supply struggling to respond — the stage is set for a potentially powerful multi-year bull market.
Related Reading: Brace Yourself for Elon Musk’s “Project Apex”
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According to Nvidia CEO Jensen Huang What Elon and his team has achieved is singular. It's never been done before.
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Written by Ian Cooper