Amazon Secures Copper Supply from Arizona Mine to Fuel Data Center Expansion
Pacer ETFs President Sean O’Hara breaks down why copper and other critical metals are becoming essential fuel for A.I., data centers and next-generation electronics on ‘The Claman Countdown.’
Amazon’s ambitious initiative to establish extensive artificial intelligence data centers is now making strides in Arizona. A recently restarted copper mine is providing the industrial metal that is increasingly vital for powering Big Tech’s AI infrastructure.
On Thursday, The Wall Street Journal reported that Amazon Web Services (AWS) has entered into a two-year agreement with mining giant Rio Tinto’s Nuton venture to secure copper supplies essential for its expanding AI data centers.
The Johnson Camp mine, located outside Tucson, Arizona, has become one of the first new U.S. copper production sources in over a decade, thanks to its use of Rio Tinto’s innovative bioleaching technology. This agreement encompasses approximately 14,000 metric tons of copper cathode over a four-year period.
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“We work at the commodity level to find lower carbon solutions to drive our business growth,” stated Amazon’s director of worldwide carbon, Chris Roe, in an interview with The Journal. “That means steel, and that means concrete, and it absolutely means copper with regard to our data centers.”
Bundles of copper cathode sheets at the hydromat plant within the Freeport-McMoRan open-pit copper mining complex in Morenci, Arizona, on Thursday, Sept. 19, 2024. (Getty Images)
According to the Copper Development Association, the average data center utilizes approximately 5,000 to 15,000 tons of copper, with larger facilities potentially requiring tens of thousands more for wiring, transformers, circuit boards, and power systems.
Ivanhoe Electric CEO Taylor Melvin on the company’s Santa Cruz Project in Casa Grande, Arizona.
Despite this agreement, the supply represents only a small fraction of the copper required for a single large data center, highlighting the growing demand for copper in AI infrastructure.
Amazon is committed to sourcing lower-carbon materials throughout its supply chain. The copper will be directed to manufacturers producing components for AWS data centers, while AWS will provide cloud computing and data analytics support to assist Rio Tinto in optimizing Nuton copper production and recovery.
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“It’s not just the fact that we’re processing ores that otherwise would not have been economic to process, but also that we do it at lower carbon and lower water intensity,” remarked Katie Jackson, chief executive of Rio’s copper business, to The Journal. “It’s great to see that there are customers who see that as part of the value proposition.”
Last year, copper prices soared to near record levels, with benchmark prices exceeding approximately $6 per pound amid global supply concerns as demand continues to rise.
Pacer ETFs President Sean O’Hara breaks down why copper and other critical metals are becoming essential fuel for A.I., data centers and next-generation electronics on ‘The Claman Countdown.’
Amazon’s ambitious initiative to establish extensive artificial intelligence data centers is now making strides in Arizona. A recently restarted copper mine is providing the industrial metal that is increasingly vital for powering Big Tech’s AI infrastructure.
On Thursday, The Wall Street Journal reported that Amazon Web Services (AWS) has entered into a two-year agreement with mining giant Rio Tinto’s Nuton venture to secure copper supplies essential for its expanding AI data centers.
The Johnson Camp mine, located outside Tucson, Arizona, has become one of the first new U.S. copper production sources in over a decade, thanks to its use of Rio Tinto’s innovative bioleaching technology. This agreement encompasses approximately 14,000 metric tons of copper cathode over a four-year period.
A.I. WON’T KILL YOUR JOB, BUT IT WILL CHANGE WHAT ‘REAL WORK’ MEANS, ROBINHOOD C.E.O. SAYS
“We work at the commodity level to find lower carbon solutions to drive our business growth,” stated Amazon’s director of worldwide carbon, Chris Roe, in an interview with The Journal. “That means steel, and that means concrete, and it absolutely means copper with regard to our data centers.”
Bundles of copper cathode sheets at the hydromat plant within the Freeport-McMoRan open-pit copper mining complex in Morenci, Arizona, on Thursday, Sept. 19, 2024. (Getty Images)
According to the Copper Development Association, the average data center utilizes approximately 5,000 to 15,000 tons of copper, with larger facilities potentially requiring tens of thousands more for wiring, transformers, circuit boards, and power systems.
Ivanhoe Electric CEO Taylor Melvin on the company’s Santa Cruz Project in Casa Grande, Arizona.
Despite this agreement, the supply represents only a small fraction of the copper required for a single large data center, highlighting the growing demand for copper in AI infrastructure.
Amazon is committed to sourcing lower-carbon materials throughout its supply chain. The copper will be directed to manufacturers producing components for AWS data centers, while AWS will provide cloud computing and data analytics support to assist Rio Tinto in optimizing Nuton copper production and recovery.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business correspondent Madison Alworth reports on Lonestar planning A.I. data centers in space, with satellites launching this fall and goals for lunar centers by 2030 on ‘Varney & Co.’
“It’s not just the fact that we’re processing ores that otherwise would not have been economic to process, but also that we do it at lower carbon and lower water intensity,” remarked Katie Jackson, chief executive of Rio’s copper business, to The Journal. “It’s great to see that there are customers who see that as part of the value proposition.”
Last year, copper prices soared to near record levels, with benchmark prices exceeding approximately $6 per pound amid global supply concerns as demand continues to rise.
