AI data centers are driving copper prices up
AI data centers are using way more copper than older facilities—up to 50,000 tons per site.
This surge is pushing copper demand to new highs and making it pricier for automakers.
Copper and electricity demand could become critical issues
With AI data centers popping up everywhere, experts say we could see a significant copper shortfall in the coming years.
Data centers are also set to take a bigger chunk of global electricity demand, which only adds more pressure on copper supplies.
Automakers are already feeling the impact
Automakers like Maruti Suzuki and Hyundai are already feeling the pinch.
Maruti's profit margins dropped in Q3 of fiscal year 2026 partly because of pricier metals, while Hyundai hiked car prices in January due to raw material inflation.
Potential DRAM shortages could spell trouble for the auto industry
UBS warns that if this trend continues, shortages of key materials like DRAM—driven by AI data center demand for memory chips and manufacturers prioritizing high-margin AI server contracts over automotive applications—could disrupt car production as soon as Q2 2026.
The auto industry now has some big supply chain challenges ahead.