The global expansion of artificial intelligence infrastructure is creating significant demand for copper, a metal essential for electrical and construction applications in AI facilities. According to UN Trade and Development statistics, the AI market is forecast to rise from roughly $200-$400 billion to more than $1.8 trillion-$4.8 trillion by 2030-2033, requiring new global facilities that will consume substantial amounts of copper for plumbing and electrical infrastructure. This demand surge comes as copper already plays a crucial role in the green energy transition, with industries moving away from fossil fuels.
Copper consumption is projected to rise from 25 million metric tons in 2021 to 39 million metric tons by 2040, according to UN Trade and Development statistics. However, current mining rates may only see a 16% increase in primary copper production by 2040, far below the needed 56%, indicating a substantial shortfall. While recycled copper currently bridges some of the supply gap, new mines and improved recycling are essential to prevent severe copper shortages by 2040, according to Addionics. By the early 2030s, this demand is expected to exceed supply by more than 6 million metric tonnes annually.
Major construction companies including Bechtel Corp., Turner Construction Co., Kiewet Corp., Fluor Corp., DPR Construction and AECOM, all with annual revenues between $14 billion and $23 billion, are positioned to build AI infrastructure globally. At the forefront of AI governance initiatives are the G7 countries (U.S., Canada, France, Germany, Italy, Japan and the United Kingdom), with other countries watching how those initiatives develop for adaptation. Furthermore, the companies seen shaping the AI landscape are multinational giants such as Apple, Meta, Open A.I., Microsoft and Nvidia that have the resources to invest into AI now and into the future.
For investors seeking exposure to copper, exchange-traded funds offer access to mining companies rather than requiring commodity brokerage accounts. The Sprott Copper Miners ETF (NASDAQ: COPP) from Sprott, which launched in March of 2024 and has attracted $290 million in assets under management as of Feb. 18, carries an expense ratio of 0.65%. There is also a potential play on junior copper miners with Sprott Junior Copper Miners ETF (NASDAQ: COPJ), which has $375 million in AUM as of Feb.18 and has an expense ratio of 0.35%. Total return performance has been robust for COPP and COPJ, with COPP up 98% in the past year and COPJ at 140%, as of February 2026, though past performance does not guarantee future results.
Copper production is concentrated in several key countries, with Chile producing the most copper at 5.3 million tons in 2024, followed by the Democratic Republic of the Congo (3.3M tons), Peru (2.6M tons) and China (1.8M tons). Production is expected to grow in the mid-single digits throughout this decade, according to the UN Trade and Development organization. The metal's essential properties including high thermal and electrical conductivity make it indispensable for both traditional construction and emerging technological applications, particularly as AI becomes more integrated into everyday life and business operations worldwide.
