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Is the World Ready for the Copper Crisis?
Copper, often referred to as the “red metal,” is an essential resource that underpins numerous industries, from electronics to energy and armament.
As we stand at a pivotal juncture in global economic dynamics, the demand for copper is surging due to various factors, particularly the rise of artificial intelligence (AI) and increasing geopolitical tensions.The current copper crisis is of a multifaceted nature. What are the implications of skyrocketing demand, supply chain vulnerabilities, fluctuating market prices, and the potential geopolitical ramifications?
The Surge in Copper Demand
Artificial Intelligence
Recent estimates from mining giant BHP suggest that the burgeoning AI sector could nearly double global copper demand by 2050. Currently, data centers, which play a crucial role in AI development, account for about 1% of copper demand. However, as these centers expand to accommodate the increasing computational requirements, that figure could rise to 6–7%, driven by the need for enhanced electrical capacity. Projections indicate that global demand could reach a staggering 52.5 million tonnes per year, representing a 72% increase from…
