Rio Tinto to Supply Copper for Amazon's AI Data Centers

Rio Tinto and Amazon Announce Copper Supply Deal

Rio Tinto has entered a two-year agreement to supply copper to Amazon.com for use in its artificial intelligence data centers. The copper will be sourced from a mine in Arizona utilizing Rio Tinto’s innovative Nuton leaching technology. Financial terms and specific production volumes of the deal have not been disclosed by the companies.

Surging AI Demand Fuels Copper Market

This partnership highlights the rapidly growing demand for copper from the AI industry, a critical component for wiring, cables, and circuit boards. The AI sector's expansion is expected to boost global copper demand by 50% by 2040, while analysts warn of potential supply shortages, prompting a rush to secure access to the essential metal.

Impact on Metals and Tech Industries

The move signals a strategic effort by technology giants to secure vital mineral supply chains. Copper prices on the London Metal Exchange have surged above $13,000 a metric ton, a 40% increase in the past year, as expectations of soaring demand collide with tight global supplies. This trend benefits mining companies with advanced extraction technologies.

Summary and Outlook

The collaboration between a mining leader and a tech titan underscores the increasing convergence of these industries. Investors will be closely watching for similar strategic partnerships as the global race for critical minerals intensifies, which could lead to continued volatility in commodity markets.

FAQ

Q: Why is copper essential for AI data centers?
A: Copper's high electrical conductivity makes it indispensable for power grids, wiring, cables, and the electronic components that power AI infrastructure.

Q: What is Nuton leaching technology?
A: It is a Rio Tinto technology that uses naturally occurring bacteria to help extract copper from rock, representing a key innovation in mineral processing.

Source: Investing.com