Wood Mackenzie: Geopolitical supply shocks and AI power crunch collide across global base metals

Geopolitical disruptions, resource nationalism and an escalating power crunch are reshaping global base metals markets, according to Wood Mackenzie’s latest analysis. As the global data centre pipeline surpasses 250 GW, demand for power infrastructure is accelerating competition for copper, aluminium and other strategic materials.

The metals impact of AI extends well beyond data centres themselves. Transmission networks, substations and dedicated power generation can require three to four times more metal than the facilities they support, creating a new source of structural demand alongside electrification and energy security investment.

Yet upstream investment is struggling to keep pace. Despite elevated commodity prices, project sanctioning remains below expectations as permitting delays, geopolitical uncertainty and increasing project complexity weigh on investment decisions. The challenge comes as governments place greater emphasis on supply-chain resilience and critical mineral security.

“Data centres represent an economy-wide power infrastructure challenge, but the bigger story is the collision between accelerating demand and increasingly complex supply delivery,” said Lindsay Grant, Vice President of Metals and Mining Research at Wood Mackenzie. “High prices should trigger investment, yet project sanctioning remains below expectations. Without faster approvals and investment commitments, the industry cannot deliver the mine supply needed to support future growth.”

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →