3 Trends That Will Push Copper Higher in 2028

Copper, often dubbed "Dr. Copper" for its role as a global economic indicator, may be poised for a significant price rise in the coming years. In the past year, the Global X Copper Miners ETF has gained 37%, driven by rising demand for the metal and dwindling supplies from aging mines. With new production lagging behind demand, copper prices are expected to climb over the next decade. This article outlines three key trends that could propel copper prices higher in 2028 and beyond.

One major driver is the explosive growth of data centers, fueled by hyperscalers like Alphabet, Amazon, Microsoft, and Meta Platforms. These tech giants are pouring billions into building and expanding data centers to support their operations. In fact, Amazon plans to spend $10 billion on data center construction this year alone. McKinsey projects that data center investments could reach a staggering $7 trillion by 2030.

This surge in data center spending is a major boost for copper demand, as the metal is a crucial component in these facilities. Copper's superior conductivity and durability make it essential for wiring, circuit boards, and other components in data centers. As hyperscalers continue to expand their data center networks, the demand for copper is expected to soar. This trend, combined with the decline in copper production from aging mines, could create a perfect storm for higher copper prices in the years to come.