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Qabil Ashirov

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Forecasts for copper demand from artificial intelligence (AI) data centers may be overly optimistic, as rising prices are curbing consumption and accelerating the substitution of copper with cheaper aluminium in some applications, analysts say.

According to international media outlets, analysts have raised concerns about projections for future copper consumption amid technological changes and growing cost pressures.

Bruce Alvey, an analyst at British financial data group LSEG, said some estimates of copper consumption by AI data centers contained inaccuracies. The expansion of fiber-optic technology is also reducing the need for copper in certain applications.

Alvey forecasts that annual copper demand growth in China, the world's largest consumer of the metal, could slow to 1%–1.5% by 2030.

Tanya Winter, a representative of German copper processor Aurubis, said customers had begun suspending orders when copper prices exceeded $14,000 per metric ton.

Copper currently costs approximately 4.8 times as much as aluminium. Analysts expect substitution to accelerate if the price gap widens to six or seven times, potentially limiting copper consumption in some industries.