GCC copper demand set to strengthen through infrastructure investment

Copper demand across the Gulf Cooperation Council (GCC) is expected to rise steadily over the medium term, driven by growing investments in artificial intelligence (AI), data centres, power infrastructure and electrification, according to a report by global financial services firm UBS.

The report said the Middle East is likely to emerge as an increasingly important market for copper as governments and businesses accelerate digital infrastructure and energy transition projects. 

UBS expects the region to benefit from expanding data centre capacity and rising investment in electricity generation, transmission and distribution networks. Globally, copper demand linked to data centres and associated power generation is projected to increase from around 900 kilotonnes in 2025 to nearly 1.55 million tonnes by 2030, representing annual growth of about 11%.   By the end of the decade, these applications are expected to account for around 4% of global copper demand and contribute 15-20% of overall demand growth.UBS said AI-driven hyperscale data centres require significantly larger volumes of copper because of higher electricity consumption and cooling requirements. 

The metal is widely used in transformers, switchgear, busbars and other critical electrical equipment.The firm said expanding renewable energy projects, electric vehicles, defence investments and power grid upgrades would provide additional long-term support for copper consumption.