AI and Defense Spending Drive Copper "Super Cycle"

Published: Mar 23, 2026 14:57

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Morgan Stanley highlight that the race for AI and growing defense spending are becoming primary drivers for copper demand. Global AI data centers alone are projected to consume 740,000 tonnes of copper in 2026 (approx. 2.1% of total demand). The research warns that with mine development timelines extending to 18 years, the world could face a 10 million metric ton supply deficit by 2040, even if recycled copper scrap production more than doubles.

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