AI boom drives demand for energy, copper and infrastructure

By EPN Staff

Tech giants, including Google and Meta, are fueling the next wave of artificial intelligence, and this time the spotlight is on energy, metals and rare-earth minerals. 

Quick and scalable access to electricity has become critical for companies that have gone all in on AI, pushing them to invest in energy production and infrastructure at an unprecedented scale. 

Regions like Texas, with abundant natural gas and renewable energy potential, have emerged as key hubs to meet the surging demand, signaling a shift away from Silicon Valley.

Why it matters

The AI-driven energy surge is prompting policy action. The Trump administration, along with 13 governors, is urging PJM Auctions, the U.S.’s largest electrical grid operator, to hold emergency auctions exclusively for data centers, aiming to accelerate billions in new power plant construction. 

On the other side of the debate, Sen. Bernie Sanders (I-Vt.) has called for a moratorium on new data centers to ease pressure on resources, a move Democrats have rejected. Some states are experimenting with reforms that exempt certain industrial or off-grid energy providers from traditional regulations, allowing faster, private solutions to meet demand.

These policy stances are due to the AI boom reshaping not just technology but the physical supply chain. Alphabet, Google’s parent company, acquired a clean power company for $4.75 billion earlier this year, signaling its intent to expand solar, wind and battery assets to power its data centers. Meta has signed agreements with nuclear energy providers, making it “one of the most significant corporate purchasers of nuclear energy in American history.”

Copper, essential for wiring massive data centers, is in short supply, posting a 42% annual gain, its strongest performance since 2009. Demand for copper is expected to see a 50% jump by 2040, directly attributed to the AI boom. 

Rare earth metals, critical for AI hardware, are also in high demand, though the U.S. remains heavily reliant on foreign sources, with China accounting for roughly 70% of rare-earth mine output and 90% of refining capacity. 

The big picture

For consumers, the rapid expansion of data centers could translate into higher electricity costs. Analysts at Carnegie Mellon estimate growth across the country could push rates up 8% by 2030, highlighting how technological advancement can ripple through everyday life.

The rise of AI is no longer just a story about algorithms. Securing the energy and materials to power these systems — from copper and rare-earth metals to solar, wind and nuclear energy — is central to the industry’s growth, experts say. This intersection of technology, natural resources and policy is reshaping markets, guiding investment decisions and influencing the cost of energy for Americans. Stakeholders say as AI adoption scales, companies, regulators and consumers will need to adapt in real time to manage the economic and resource demands of this rapidly expanding sector.