Alphabet’s Data Center Costs Pressured by 590,000-Ton, 300% Copper Glut
U.S. copper inventories hit 590,000 short tons, a 300% surge in 12 months as traders front-ran potential 15–25% tariffs, creating a domestic glut that could depress prices until mid-2026. Alphabet’s data-center costs may benefit short-term but risk rising sharply as AI-driven demand could jump 130% by 2030.
1. Inventory Surge
U.S. copper inventories climbed to 590,000 short tons, a 300% increase in 12 months as traders front-ran potential 15–25% tariffs by stockpiling refined copper in COMEX-approved facilities.
2. Tariff Uncertainty and Price Risks
Pending tariffs may create a domestic surplus that could depress copper prices through mid-2026, after which the release of stockpiled metal could trigger a steep price correction.
3. Short-Term Benefits for Alphabet
Alphabet may see reduced copper procurement costs for upcoming data-center expansions, easing capex on power distribution and networking infrastructure during the inventory glut.
4. Structural Long-Term Demand
Industry experts forecast AI deployments and electrification will boost copper demand by 130% through 2030, with each large-scale data center requiring roughly 50,000 tons, heightening shortage risks post-tariff resolution.