Frank Holmes, Executive Chairman of HIVE Digital Technologies, warns of a potential copper shortage. This shortage could impede the rapid buildout of AI infrastructure. Holmes noted a single gigawatt-scale data center requires approximately 50,000 tons of copper. Global supply is not keeping pace with surging demand driven by the AI boom.
Nvidia plans to mobilize over $500 billion for AI infrastructure projects, partnering with asset managers. Holmes states securing capital is straightforward. However, sourcing raw materials like copper presents a significant challenge. Copper prices have increased 16% year-to-date. This reflects market anticipation of a supply-demand imbalance. HIVE is transitioning from cryptocurrency mining. The company now focuses on AI and high-performance computing (HPC).