This Metal is Crucial for AI, Yet in Short Supply. Here Are 3 Top Mining Stocks to Buy to Capitalize on the Looming Deficit.
The data center build-out is driving demand for copper.
This Metal is Crucial for AI, Yet in Short Supply. Here Are 3 Top Mining Stocks to Buy to Capitalize on the Looming Deficit.
Overview
You cannot build a data center without copious amounts of copper -- and that goes double for an artificial intelligence (AI) data center. A traditional data center requires between 5,000 and 15,000 tons of copper, according to the Copper Development Association. AI data centers, by contrast, can need up to 50,000 tons of copper per facility.
An enormous amount of money will be spent on constructing AI data centers over the next decade by cloud computing providers such as Meta Platforms, Amazon, and Alphabet, the parent of Google. They plan to spend some $765 billion this year on AI infrastructure, according to Goldman Sachs, a figure that's expected to increase to more than $1.6 billion by 2031.
Details
As a result of that investment, AI data centers could use half a million tons of copper a year by 2030. That's in addition to all the copper needed for other modes of electrification.
Source
Originally published at www.fool.com.
