Analysts are still forecasting copper to be one of the big winners if Middle-East peace is resolved at a time when demand for the base metal is tipped to reach another level with the boom in Data Centre growth.
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According to S&P Global, the Middle East war has impacted copper markets through upward pressure from higher production and shipping costs and severely disrupted global supply chains.
Notably, the Middle East is a vital supplier of sulphur, and this has significantly increased the price of sulphuric acid, a vital ingredient in electrowinning (SX-EW) copper operations.
JP Morgan says copper is widely utilised in major industrial sectors, but global mine production remains tight due to ongoing supply-side disruptions.
That pressure is being applied at the same time as analysts such a S&P Global have tipped global copper demand to rise from 28 million tonnes per year in 2025 to 42 million tonnes per year in 2040, an increase of about 50%.
The copper demand is being led by the surge in AI usage and global growth in Data Centres.
BHP has forecast that global data centre copper needs will jump from around 500,000 tonnes per year today to approximately three million tonnes per year by 2050.
With those types of forecasts, copper prices have surged over 60% since April 2025., primarily fuelled by AI-driven infrastructure demand.
The metal is favoured for its high-speed data transmission between servers and other equipment for shorter distances, with its electrical and thermal properties making it an essential component for artificial intelligence data centres.
According to industry figures, a data centre requires approximately 15 to 27 tonnes of copper per megawatt (MW) of applied power. Overall, conventional data centres typically use 5,000 to 15,000 tonnes, while massive AI and hyperscale data centres can require up to 50,000 tonnes of copper across their facility and power infrastructure.
The International Energy Agency (IEA) says global data centre electricity consumption is projected to rise to approximately 945 TWh by 2030, roughly doubling current levels.
The IEA says as long as Data Centres continue to expand, investment in grid connections, transformers, transmission lines, and distribution equipment must keep pace, creating highly inelastic demand for copper in these segments.
Pricewise, copper is currently targeted for a potential breakout toward US$15,000 by 2026, supported by critical floors between US$13,300 and US$13,400.
According to Reuters, the speculative fever that drove copper prices to record highs in January has abated but is still simmering away.
Investors, both institutional and retail, continue to be drawn by copper’s strategic exposure to both energy transition and artificial intelligence megatrends.
Global copper demand is also projected to soar in the coming decades, driven by renewable energy transitions and electric vehicles (EVs).
Forecasts point to long-term structural deficits as demand vastly outpaces the timeline for new mining developments and existing ore grades decline.
The IEA says the push for solar, wind, and battery storage requires significantly more copper per megawatt than legacy power generation.
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