As we step into 2026, AI infrastructure continues its impressive expansion, with data centers, advanced GPUs, and high-performance servers driving innovation worldwide. Behind the scenes, a select group of metals plays a vital role in enabling reliable power delivery, efficient cooling, and cutting-edge semiconductors. These materials form the physical foundation of AI progress. This article explores the key metals involved, current demand trends, and a balanced outlook on supply dynamics—highlighting both opportunities and ongoing developments.
Key Metals Supporting AI Infrastructure
Modern AI systems rely on well-established metals, each chosen for specific properties that ensure performance and reliability.
- Copper: Widely used for wiring, cables, busbars, power distribution, and heat exchangers due to its excellent electrical and thermal conductivity.
- Gold and Silver: Provide reliable, corrosion-resistant connections in chips, GPUs, and high-speed interconnects.
- Aluminum: Essential for lightweight heat sinks, chassis, and structural components that manage heat effectively.
- Tantalum and Palladium: Enable compact, high-performance capacitors and plating for stable power delivery in dense electronics.
- Gallium and Germanium: Support advanced compound semiconductors (e.g., GaN, GaAs) and high-speed optics for efficient AI accelerators and data transmission.
- Rare Earth Elements (e.g., neodymium, dysprosium, praseodymium): Used in permanent magnets for hard drives, cooling fans, pumps, and motors.
- Supporting Metals: Cobalt and nickel in batteries and metallization; platinum in sensors.
These metals have powered electronics for decades, and their role in AI builds on proven applications.
Demand and Supply Outlook in 2026
AI growth, alongside electrification and renewables, is increasing demand for several metals—particularly copper. Markets are adapting through higher prices, new investments, and improved recycling.
Copper: A Key Focus Area
- Demand Growth: Global refined copper demand reached approximately 28 million tonnes in 2025. Data centers contribute a growing share, with estimates for AI-related consumption ranging from 250,000–550,000 tonnes annually by 2030 (IEA) to higher figures in some analyst scenarios (up to 1 million tonnes in optimistic buildout cases).
- Market Balance: 2025 saw a mix of surpluses and tightened supply due to disruptions. Forecasts for 2026 vary: some project modest surpluses, others balanced markets or small deficits (e.g., 150,000 tonnes per ICSG estimates).
- Price Trends: Prices averaged elevated levels in 2025 and are expected around $10,000–$11,400 per tonne in 2026 (Goldman Sachs), reflecting investment signals rather than acute crises.
- Longer-Term View: The IEA notes that existing and planned mines cover about 70–80% of projected demand to 2035, encouraging ongoing project development.
Higher prices are effectively stimulating exploration, mine expansions, and recycling efforts worldwide.
Other Metals: Steady Progress
- Gallium, Germanium, Tantalum: Recent trade agreements have extended export stability through 2026, supporting semiconductor production. Diversification efforts continue.
- Rare Earth Elements: Supply is concentrated but sufficient for current needs, with new projects outside China coming online gradually.
- Broader Trends: The IEA’s 2025–2035 outlook shows improving balances for most critical minerals as investments ramp up.
Positive Developments and Adaptations
The industry is responding proactively:
- Increased recycling rates for copper, silver, and precious metals.
- Significant investments in new mines and processing capacity (e.g., in the Americas, Africa, and Australia).
- Technological efficiencies reducing metal intensity per compute unit.
- Policy support for domestic supply chains in the US, EU, and elsewhere.
These efforts demonstrate the market’s ability to adapt to growing demand.
Looking Ahead
The metals underpinning AI infrastructure are fundamental enablers of technological progress. While demand is rising steadily, ongoing investments, recycling innovations, and market adjustments are helping maintain supply momentum. As AI continues to advance in 2026 and beyond, collaboration across industry and governments will support sustained growth.
Sources
- International Energy Agency (IEA). Global Critical Minerals Outlook 2025. https://www.iea.org/reports/global-critical-minerals-outlook-2025
- Goldman Sachs Research. Copper price forecasts (2025–2026 updates). https://www.goldmansachs.com/insights/articles/copper-prices-forecast-to-decline-from-record-highs-in-2026
- Tom’s Hardware. Articles on copper and AI data centers (2025). https://www.tomshardware.com
- Carbon Credits. “Data Centers’ Copper Hunger” (2025). https://carboncredits.com/data-centers-copper-hunger-how-ai-is-driving-a-looming-supply-crunch/