NEW YORK, July 7 — The artificial intelligence boom has a material problem, and it is not just about chips or power. It is about copper. A single hyperscale data center, the kind built by Amazon Web Services or Microsoft, uses between 800 and 1,000 tons of the metal, according to a 2023 study by the Copper Development Association.
That copper runs through power cables, grounding systems, busbars, and networking cables. It is also embedded in transformers, switchgear, and backup generators.
The metal’s high conductivity makes it essential, but its value and accessibility are creating a parallel crisis: theft. Here is the mechanics. Copper is installed during early construction, when sites are less secure.
Thieves can strip it quickly and sell it to scrap yards, where it fetches $3.50 to $4.00 per pound. The London Metal Exchange price averaged $8,500 per metric ton in 2023.
The financial incentive is straightforward, and the consequences for data center operators are severe. Replacement wiring must be ordered and reinstalled, a process that can delay projects by weeks. The Copper Development Association estimates that copper theft from all infrastructure costs the U.S. economy $1 billion annually.
That figure covers everything from construction sites to power grids, but data centers are emerging as a particularly high-value target. The metal is concentrated, easy to remove, and in high demand. The catch is that AI data centers require more power than traditional ones, meaning more copper for electrical systems.
The U.S. Energy Information Administration reported that data centers consumed about 1% of total U.S. electricity in 2022. That share is growing as high-performance computing for AI expands.
More power means more copper, and more copper means more exposure to theft. On closer reading, the problem is not just about security guards or fences. It is about the fundamental economics of the metal itself.
Copper is a commodity with a global price, and when that price rises, theft follows. Scrap yards pay cash, and the metal is easy to transport.
The $3.50 to $4.00 per pound that thieves receive is a fraction of the market price, but it is enough to drive organized crews. Data center operators face a choice: invest in better security during the construction phase, or accept the risk of delays. Some are moving toward prefabricated copper assemblies that are harder to remove.
Others are switching to aluminum for certain applications, though aluminum has lower conductivity and requires larger cables. The trade-offs are real, and the math is not simple. The timeline matters.
Copper is typically installed early, before walls go up and security systems are fully operational. That window of vulnerability is when most theft occurs.
Once the data center is live, the copper is behind locked doors and monitored by cameras, but by then the damage is done if the initial installation was stripped. The broader picture is that AI infrastructure is being built at a pace that strains supply chains for everything from semiconductors to construction labor. Copper is just one more bottleneck.
The Copper Development Association’s $1 billion annual estimate covers all infrastructure, but data centers are a growing share of that total. The industry is watching.
What to watch next: whether copper prices continue to rise, and whether scrap yards face tighter regulation. The London Metal Exchange price is the key indicator. If it climbs further, the theft problem will worsen.
If it falls, the incentive diminishes, but the demand from AI data centers is structural, not cyclical. The copper is going in, one way or another. The question is whether it stays there.
