AI boom drives soaring copper demand while optics and synthetic diamonds emerge as alternatives

AI-driven growth is intensifying demand for copper, a key material in data-center power distribution, automotive electrification and grid expansion, with prices rising over 30% recently. A forecast from the International Energy Agency suggests primary copper output may be 25% below the amount required by 2035, reflecting limited new discoveries and declining ore quality. To address performance limits, firms are turning to fiber-optic links, which can move data faster and use less energy, with companies such as Lumentum, Coherent, Marvell and Corning supplying the technology.

In parallel, lab-grown diamonds, whose thermal conductivity far exceeds copper, are being trialled for cooling high-power AI processors, exemplified by Akash Systems’ diamond-cooled servers built around Nvidia chips. While these alternatives complement copper rather than replace it, the combined pressure on materials underscores supply challenges for the expanding AI infrastructure.