- Artificial intelligence is now the largest consumer of copper globally
- A single AI data centre uses approximately 28 to 30 tonnes of copper
- Hindustan Copper aims to triple ore output to 12.2 million tonnes by 2031
As artificial intelligence and data centres continue to take over the world, these are emerging as the largest users of copper as well. According to Sanjiv Kumar Singh, chief managing director of Hindustan Copper, artificial intelligence has surprisingly become the single largest consumer of copper, a fact that "very few people know."
While it is well known that electric vehicles, wires, rods, and machines are major sources of demand for copper, a single AI data center consumes close to 28 to 30 tonnes of copper. This new demand driver is playing a significant role in keeping copper prices stable, according to him.
Beyond the influence of AI, Singh notes that global copper deposits and mines have increased over the last five years, which will help to improve the grade of copper available as well.
On a more local level, Singh said Hindustan Copper has reopened some mines in Jharkhand that were closed since 2001. Reopening these mines will immediately add to the company's production, contributing to overall supply.
According to independent market analyst Ambareesh Baliga, Hindustan Copper could potentially deliver multi-bagger returns over the next couple of years.
"The demand for copper is going to increase, given the AI and data centre boom. There have been talks that copper could be the new gold, from an industrial point of view," he told NDTV Profit earlier.
Baliga's statement comes on the back of a recent optimistic outlook on copper, with futures trading near range highs. Copper prices have seen an uptick on the back of various global factors, including Trump Tariffs and supply constraints.
The frenzy over copper in India has been further accentuated by Hindustan Copper's recent announcement of a capacity ramp-up, with the company looking to increase its ore output threefold from 3.47 million tonnes per annum to 12.2 million tonnes by FY31.
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