S&P Global estimates that the demand for copper will increase by 50% by 2040, driven by advances in AI technology and increased defense spending.

According to an estimate from S&P Global, global copper demand will increase by 50% by 2040, reaching 42 million tons per year, due to advancements in artificial intelligence (AI) and rising defense spending. Currently, copper supplies are expected to remain over 10 million tons behind demand, with risks of covering nearly a quarter of the need without new sources of supply. Copper, essential in construction, transportation, and technology, will be increasingly in demand due to electrification and AI projects, including data centers valued at nearly $61 billion. Additionally, the conflict in Ukraine and defense measures from various countries will contribute to rising demand. Chile and Peru remain the main producers, while the United States imports half of its annual copper needs. S&P used a different methodology compared to previous forecasts, emphasizing that demand will continue to grow regardless of climate policies.