Goldman Sachs identifies AI-related spending as the top factor behind copper’s price gains since early 2025, surpassing traditional drivers.
Copper prices are increasingly influenced by expectations of AI-driven infrastructure investment rather than traditional manufacturing demand. Goldman Sachs estimates data centers currently account for just 1% of global copper consumption but projects years of spending on grids, transformers, and transmission lines to support AI growth.
The bank’s model shows AI-related expectations have overtaken China’s growth outlook, dollar movements, and physical market tightness as the largest contributor to copper’s cumulative gains since early 2025. While China remains the metal’s largest consumer, future infrastructure needs are now the dominant price driver.
Copper is critical to AI infrastructure, from data center wiring to high-voltage transmission systems. Despite the shift in focus, traditional demand factors like China’s industrial activity remain relevant in the market.