Copper: Data Centre Download

Research evidence excerpt

Copper: Data Centre Download

Powered by Lab Global16 JulyResearch2026ab Evidence UBS YES

Copper Equities

GlobalCopper: Data Centre Download

Basic Materials

Daniel Major

Increasing Data Centre (DC) demand forecasts Analyst

AI is the dominant investment theme in the broader market with Data Centres and daniel.major@ubs.com

associated power generation/ infrastructure the key AI exposure/growth segment within +44-20-7568 3472

industrials/materials. DCs are power intensive and therefore copper intensive, so copper Amy Yi Li

finds itself in the 'AI basket'; but how important are DCs for the copper market? In our Analyst

view, DCs are unlikely to drive a 'transformational' step change in copper demand (vs amy-yi.li@ubs.com

50yr demand CAGR ~2.5%); but they are one of a number of secular growth drivers +44-20-7568 2064

(EVs, renewables, grids & defence) underpinning robust medium-term demand. Within Andre Kukhnin

these high-value applications, copper represents a small proportion of total cost and is Analyst

generally difficult to replace/reduce; we therefore see limited demand elasticity in the andre.kukhnin@ubs.com

next 3-5yrs. +44-20-7567 2162

Jingyi Zheng

We incorporate UBS latest upgraded forecasts for the DC equipment market (link to Analyst

jingyi.zheng@ubs.com

note by UBS Capital Goods team & supported by UBS Evidence Lab), and provide details

+44-20-7568 3962

of our methodology to estimate copper demand across the DC value chain from both: (i)

the installation of data centre equipment, in cabling, busbars, transformers and Myles Allsop

switchgears (across white space, grey space & cooling), and (ii) the incremental Analyst

myles.allsop@ubs.com

power generation associated with higher electricity demand.

+44-20-7568 1693

Dini Magoon