Rio Tinto will supply copper to Amazon to build AI data centers

Rio Tinto announced on Thursday that it will supply copper it leaches from a mine in Arizona to Amazon.com, for use in its artificial intelligence data centers.

The move highlights the rampant demand by?the?AI industry to access supplies of copper and critical minerals used in building wiring, cables and circuit boards, and other electronic components.

Analysts have warned that supplies may fall short and a rush is underway to ensure access.

Companies that produce parts for Amazon Web Services will use the copper from Rio's Nuton Leaching Program, which is a mine owned and operated by Gunnison Copper.

The companies did not reveal financial terms or production volume. Rio did not respond immediately to a comment request.

Nuton uses bacteria to produce heat naturally when it is applied to certain types or rocks, which helps to extract copper.

Rio has studied leaching for over 30 years. The leaching program was named "Nuton", after Isaac Newton (17th century British scientist) who developed the theory gravity.

Freeport-McMoRan is the largest copper producer in the United States. They have been using leach technology for many years. Freeport-McMoRan, the largest U.S. copper producer, has been using?leach technology for years.

The London Metal Exchange has seen copper prices rise above $13,000 per metric ton -- a 40% increase over the last year -- due to the expectation of a surge in demand for AI-powered data centers.

Copper is a valuable metal because of its electrical conductivity. It's used in power grids, electric cars, and other infrastructure that are critical for the energy transition. Reporting by Yagnoseni das in Bengaluru, and Ernest Scheyder from Houston; editing by Alan Barona

(source: Reuters)