Copper is central to data centre delivery and sits within the electrical systems that support energisation, resilience and commissioning, including cabling, busway, switchgear, transformers and distribution equipment.
A typical data centre requires approximately 11.6 tonnes of copper for every MW of installed capacity, with cooling and electrical infrastructure accounting for over 80% of total copper demand.
Current estimates suggest that globally, data centres and associated power infrastructure could require more than 4.3 million tonnes of copper over the next decade. With some forecasts indicating a shortfall of up to 25% to 30% by 2035, data centre projects face growing exposure as demand from both facilities and power grids continues to rise.
Despite these issues, copper is not always treated as a priority risk in early planning. For data centre clients, this creates a clear need to assess copper exposure earlier in the planning process.
Linesight data and commentary from Kevin Gardiner and Steve Raye were also featured in an article published by Singapore’s The Business Times, which you can read here.
Copper pricing
Copper pricing has become more volatile, and recent market movements show why data centre teams should treat copper exposure as not just a commodity issue, but a programme control consideration.
Linesight’s Construction Market Insight reports for APAC and the GCC, show that copper prices rose sharply through 2025 and into 2026. Q2 2026 is expected to mark the peak in most markets before prices ease from Q3. However, the extent and duration of any easing will depend on geopolitical conditions, supply chain disruption and the impact of sulphuric acid constraints on copper production.
Why copper is under pressure
Copper demand is being lifted by electrification, grid investment and digital infrastructure. By 2035, global copper demand is expected to rise by 24% to 42.7 million tonnes per annum, driven by economic development, electrification and digitalisation. Data centres are a potential source of demand volatility, given the scale and speed of AI-related infrastructure growth.
The International Energy Agency also points to rising copper demand from clean technologies. Under its stated policies scenario, total copper demand is expected to increase from 26.7 million tonnes in 2024 to 31.3 million tonnes in 2030.
The investment backdrop reinforces this. BloombergNEF reported that global energy transition investment reached US$2.3tn in 2025, up 8% year-on-year. Asia Pacific accounted for 47% of the global total, while grid investment reached US$483bn. Grid expansion, renewable energy and data centre growth all increase demand for copper-intensive infrastructure.
Supply has been less responsive. Mine development is a years-long process, and processing capacity cannot scale at the same pace as demand. Recent market commentary has warned that insufficient mine investment could drive sustained shortages and price volatility. Furthermore, China’s decision to halt sulphuric acid exports from May 2026 could add further pressure to the supply chain, as sulphuric acid is a key input for some copper mining processes.
Trade policy has added another layer of uncertainty. In July 2025, the US announced 50% tariffs on semi-finished copper products and copper-intensive derivative products, while copper ores, concentrates, cathodes, anodes and scrap were excluded. The announcement followed a period of tariff-driven trade flow disruption, with traders moving material to the US ahead of potential measures.
What changed in 2026
In 2026, the copper outlook became more complex. The Middle East conflict has added further volatility. The key risk is not only the direct movement of copper. It is the wider impact on energy prices, shipping costs, trade routes and currency pressure. For energy-importing APAC markets, higher oil prices can widen trade deficits and weaken currencies, compounding the local price impact of globally traded commodities.
This aligns with Linesight’s latest analysis, which shows that copper prices rose by between 9% and 18% QoQ across APAC and the GCC markets in Q1 2026. In Q2 2026, copper prices are expected to rise further, with increases of 1% to 6% across most markets.
From Q3 2026, prices may ease. However, the outlook remains dependent on geopolitical developments in the Middle East, conditions along Hormuz trade routes, and the continued impact of sulphuric acid supply constraints on copper production.
What this means for data centre projects
Copper price volatility can have a meaningful impact on procurement behaviour, tender validity and delivery certainty.
Copper is embedded in long-lead electrical packages. These packages often rely on global supply chains, constrained manufacturing capacity and price validity periods that can shorten quickly when markets move. For multi-market programmes, the same copper movement can produce different outcomes depending on procurement timing, local currency exposure, supplier strategy and the maturity of design information.
Volatility also affects risk allowances. When copper pricing is stable, escalation and contingency assumptions tend to hold. When pricing is unstable, projects can face more supplier repricing, more change events and increased pressure on contingency. This is particularly relevant where scope is still evolving or electrical packages have not yet been committed.
What clients can do now
In a more volatile pricing environment, clients need to protect cost certainty when raw material prices move.
Practical actions include:
- Aligning escalation assumptions across markets and delivery partners
- Setting clear rules for contingency use, reporting and approvals
- Reviewing procurement sequencing for copper-heavy packages
- Testing bid validity periods before tender issue
- Understanding supplier assumptions on material pricing, fabrication capacity and lead times
- Using consistent benchmarks, so country-level movement does not distort programme-level decisions
- Tracking copper alongside energisation, grid connection and commissioning milestones
Linesight helps clients turn commodity volatility into a manageable delivery risk. We combine market intelligence, cost data, procurement insight and on-the-ground project experience across APAC.
For data centre clients, this means we can help:
- Benchmark costs consistently across markets
- Review escalation and contingency assumptions
- Stress test long lead material procurement strategies against forecasted market conditions
- Support early supplier engagement and tender planning
- Track market movement against live project decisions
Copper will remain central to electrification and data centre growth. The advantage will sit with teams that identify exposure early, align commercial assumptions and manage procurement timing with the same discipline they apply to energisation and commissioning
