Economic Survey 2026 Flags Looming Global Copper Shortage Amid Surge in AI Data Centre Power Demand

The Economic Survey 2026 has warned of a potential global copper shortage as rapidly expanding artificial intelligence (AI) data centres sharply increase electricity demand, intensifying pressure on already constrained copper supplies.

According to the Survey, copper — a critical input for power transmission, data centre infrastructure, renewable energy systems, and electric mobility — is witnessing rising demand driven by large-scale AI computing facilities. These data centres require extensive cabling, transformers, and grid upgrades, all of which are copper-intensive.

The Survey noted that while global demand for copper is accelerating, supply growth remains limited due to long gestation periods for new mines, declining ore grades, and regulatory hurdles in major producing regions. This imbalance could lead to sustained price volatility and supply risks over the medium term.

Highlighting the strategic importance of copper in the global energy transition, the Survey observed that the metal is indispensable not only for digital infrastructure but also for clean energy technologies such as solar, wind, and electric vehicles. The overlapping demand from AI-driven digitalisation and decarbonisation efforts is expected to strain global markets further.

The Survey underscored the need for countries to secure long-term access to critical minerals through diversification of supply sources, overseas asset acquisitions, recycling, and investment in alternative technologies. For India, it emphasised strengthening domestic value chains and reducing vulnerability to global commodity shocks as digital and energy infrastructure expands rapidly.