Data centers form the backbone of our digital world, and the explosive growth of artificial intelligence (AI) has transformed them into one of the most resource-intensive industries on the planet. While AI advancements are widely recognized, the underlying factors driving this transformation are often overlooked.
The global data center market is on track to double or even triple in value from its current level of approximately $350 billion to potentially reach a trillion dollars by 20341, Rapidly growing AI workloads are driving power demand even higher to support these massive data centers.
In 2024, data centers consumed 415 terawatt-hours of electricity, representing approximately 1.5% of global electricity consumption. By 2030, global data center electricity consumption could approach 1,000 terawatt-hours, largely driven by the rapid growth of AI workloads. In advanced economies, data centers may account for more than 20% of electricity demand growth during this period, according to the IEA2 .
Notably, half of this power will originate from AI-specific data centers known as AI factories. As data centers rapidly double their power consumption, their demand for critical minerals is also soaring, driven by the reliance of nearly every component—from servers to batteries and fans—on materials like copper for wiring and heat exchange, nickel, cobalt and manganese for backup energy storage; together, these minerals are essential to sustaining the growth of today’s energy-intensive digital infrastructure. A single Graphics Processor Unit (GPU), such as the Nvidia H100, can draw over 700 watts. A data center operating 100,000 of these GPUs generates gigawatts of compute and a substantial volume of critical minerals, powering the infrastructure and maintaining cooling operations. AI data centers require consistent and uninterrupted electricity, necessitating uninterruptible power supplies, so these systems incorporate battery backup. Lithium, cobalt, and nickel are essential components of battery chemistry. The capital expenditure for global data center power infrastructure could reach trillions by 2030, with critical minerals accounting for a significant portion of this investment.
The significance of this matter becomes evident when considering the potential impact of AI on critical mineral demand. By 2030, AI centers could represent 2 to 3% of global demand for key minerals such as copper and various elements.
These same minerals are not only essential for AI but also other industries such as electric vehicles, solar panels, defense systems, and the grid. Consequently, AI development has expanded beyond its initial focus on software and computation. It has evolved into a complex arena involving hardware, supply chains, emerging technologies, critical resources, and fierce competition for materials.
The next time you hear about a breakthrough in generative AI, it is crucial to remember the underlying factors that drive its success. While code and computation remain fundamental, the presence of copper, cobalt, and nickel underscores the significance of minerals as the backbone of AI. This understanding is paramount for investors, policymakers, and anyone contemplating the future trajectory of AI.
Hero image from Bloom Energy.
