The rapid expansion of artificial intelligence infrastructure is creating unprecedented demand for copper, with data centers powering AI workloads projected to consume more than 4 million tonnes of the metal by 2035. This emerging demand driver intensifies an already looming global copper shortfall, highlighting the critical importance of developing new mining projects to meet future supply needs.
According to Bloomberg analysts, the AI sector alone could require over 400,000 tonnes of copper annually through the next decade. This substantial demand stems from data centers' extensive copper requirements for power distribution, thermal regulation, and efficient conductivity systems necessary to support intensive AI computational workloads.
The copper conundrum presented by AI's growth places increased significance on undeveloped copper resources, particularly those in stable mining jurisdictions. Trilogy Metals Inc., through its 50/50 joint venture Ambler Metals LLC with South32, controls the Upper Kobuk Mineral Projects in Alaska's Ambler Mining District. This district represents one of North America's richest undeveloped copper districts, hosting volcanogenic massive sulphide deposits that could potentially support decades of future production.
The company is advancing both the Arctic and Bornite deposits within the district, positioning these projects as potential contributors to addressing the copper supply gap exacerbated by AI-driven demand. The timing of this development coincides with copper's expanding role across multiple sectors including renewable energy, electric vehicles, and grid modernization projects, creating compounded demand pressures on global copper supplies.
This convergence of technological advancement and mineral resource requirements underscores the strategic importance of domestic mining projects in secure jurisdictions. The projected copper consumption by AI data centers represents a significant portion of global production, potentially affecting pricing, availability, and the economic viability of various technology-driven initiatives that rely on consistent copper supply.
The implications extend beyond the mining industry to technology companies, policymakers, and investors who must consider resource availability constraints when planning future AI infrastructure expansion. The development of projects like those in the Ambler Mining District could play a crucial role in ensuring that copper supply keeps pace with the accelerating demands of artificial intelligence and other technological advancements.
