Hua Er Jie Jian Wen·2026-01-15 14:19Core Insights - Amazon's cloud computing division has signed a two-year copper supply agreement with Rio Tinto's Nuton project to meet the strong demand for copper in AI data center construction, marking the first new copper mining capacity in the U.S. in over a decade [1] - The agreement comes as international copper prices reach historic highs, driven by increased consumption from data center construction, grid upgrades, electric vehicles, and renewable energy facilities, which have offset the slowdown in traditional manufacturing and construction demand [1][8] Group 1: Copper Supply Agreement - The Nuton project in Arizona utilizes advanced bioleaching technology to efficiently process previously uneconomic low-grade ores, expected to produce approximately 14,000 tons of copper cathodes within four years [1][5] - Amazon will provide cloud computing and data analytics services to optimize metal recovery rates and assist in increasing production capacity at the Nuton project [6] Group 2: Demand and Supply Dynamics - By 2040, AI applications are projected to drive global copper demand up by about 50%, with a potential supply gap of up to 25% if mining output does not keep pace [4] - The construction of a single large data center can require several thousand tons of copper, highlighting the inadequacy of the Nuton project's output to meet the total demand of such facilities [6] Group 3: Industry Challenges - Industry executives and analysts warn that copper resource shortages could significantly constrain the rapid development of AI, which is a key driver of U.S. stock market growth and economic expansion [7] - Despite rising copper prices potentially spurring advancements in recycling technologies and optimizing copper usage, a structural supply gap is approaching due to the rapid growth in demand from various sectors [8]