The AI Data Center Boom Is Creating a Rare Opportunity in These Two Essential Metals

Why Copper and Silver Are Suddenly Everywhere

If you’ve been watching the markets, you’ve probably noticed copper and silver hitting record highs throughout 2025. But here’s what’s actually driving the frenzy: the explosive expansion of AI infrastructure worldwide. Both metals play critical roles in this buildout—they’re elite conductors of electricity that power everything from data centers to electric vehicles to renewable energy systems.

The scale of this demand is staggering. According to S&P Global, “Data center construction requires copious amounts of materials such as copper, cement and steel, which are subject to global supply chain constraints and tariffs.” Annual data center electricity consumption growth hit 19% in 2024, jumping from just 8% in 2022, with projections of 19-21% annual growth over the next several years. We’re talking about infrastructure consuming 1.21 gigawatts and beyond as the AI race intensifies globally.

Supply Crunch Meets Explosive Demand

Here’s where it gets interesting. Not only is demand soaring, but both copper and silver faced significant supply shortages in 2025. The U.S. Department of the Interior formally added both metals to its critical minerals list, recognizing their importance for national infrastructure and the AI era.

Copper’s industrial applications are obvious—it’s irreplaceable in electrical systems. Silver’s story is slightly different but equally compelling. As Yardeni Research notes, “the build-out of AI data centers is intensifying the demand for silver, and so is the ongoing production of EVs (which use more silver than combustion engines).” Silver demand is climbing faster than most people realize.

Two Ways to Capture the Trend

Copper Play: The Global X Copper Miners ETF (NYSEMKT: COPX) has surged 80% so far this year and currently manages approximately $3.5 billion in net assets across 41 mining companies. The portfolio includes heavy hitters like Lundin Mining (5.6%), KGHM Polska Miedz (5.1%), Boliden AB (5%), Southern Copper (4.7%), and Freeport-McMoRan (4.7%). The diversification across multiple mining operators and geographies means you’re not betting on a single company—you’re positioned across the entire copper supply chain.

Silver Play: The iShares Silver Trust (NYSEMKT: SLV) has more than doubled this year with a 119% gain. Managed by BlackRock, this ETF holds approximately $33.4 billion in net assets backed by physical silver bullion stored in vaults maintained by JPMorgan Chase in New York and London. It’s the most direct way to gain exposure to silver spot price movements without holding the metal yourself.

What Happens Next?

Both metals have already moved dramatically, yet the structural tailwinds remain intact. The AI data center expansion is still in early innings. Global data center electricity consumption is expected to rise from 2% of total global demand today to 9% by 2050. That 1.21 gigawatt threshold we’re crossing now is just the beginning—infrastructure demands will continue accelerating.

The combination of constrained supply, surging industrial demand driven by AI buildout, and EV production growth suggests these metals have room to run. Whether through mining company exposure (COPX) or direct silver bullion backing (SLV), both present compelling positions in an increasingly metals-hungry AI economy.