Artificial intelligence is really taking off, and with that growth comes a big demand for copper, a metal that’s essential for many technologies we need to tackle climate change. Copper is crucial for things like power cables, electric vehicles, and solar panels. According to BHP $BHP (+3.03%) , one of the largest mining companies in the world, we could see global copper demand jump from about 30 million tonnes in 2021 to around 52 million tonnes by 2050. That’s a huge increase! A big part of this demand is coming from data centers, which are the backbone of AI. Right now, data centers use less than 1% of the world’s copper, but that could rise to 6-7% in the next few decades as AI continues to grow. What’s interesting is that while data centers themselves are becoming less reliant on copper for their internal components, they still need a lot of copper to get electricity to them and to keep them cool. So, as AI pushes for more data centers, the demand for copper will only get stronger. But here’s the catch: meeting this rising demand isn’t going to be easy. It takes a long time—often 15 years or more—to open new copper mines. Plus, many existing mines are dealing with lower quality ore and other production challenges. This makes it tough to keep up with the increasing need for copper.

In response, companies like BHP are on the hunt for more copper resources. They recently spent $3 billion to buy a company called Filo, which has some promising copper projects. They’re also looking to expand their current operations to boost production.In short, as AI continues to grow, so will our need for copper. This means we’ll need to invest in mining and production to ensure we have enough copper to support the technologies that will help us fight climate change. It’s a big challenge, but it’s also an opportunity for innovation and growth in the mining industry