Amazon (AMZN) is buying copper from a mine in Arizona to support its fast-growing AI data center buildout. The deal runs for two years and comes from a site run by Rio Tinto Group (RIO). Notably, this mine is the first new U.S. copper source in more than ten years. The copper will be used in wires, power gear, and other parts needed inside data centers. As a result, Amazon is taking steps to secure key inputs before supply gets tighter.
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At the same time, the mine uses a new process that relies on bacteria and acid to pull copper from low-grade rock. This method allows output from material that was once ignored. Rio Tinto says this approach also uses less water and creates less carbon. For Amazon, the copper volume is small, yet it adds supply certainty at a time of high demand.
Meanwhile, AMZN shares dropped 2.45% on Wednesday, closing at $236.65.
Why Copper Matters for AI
Copper demand is rising due to AI data centers, power grid work, electric cars, and clean energy projects. Each large data center can need tens of thousands of tons of copper. Meanwhile, new mines take many years to start, which limits near-term supply. Because of this gap, copper prices have climbed above $6 per pound in U.S. markets.
Looking ahead, some studies expect AI to lift copper demand by about 50% by 2040. Mining output may not keep pace, which raises the risk of a shortage. In response, tech firms like Amazon are moving early to secure supply. This trend could support higher copper prices and benefit miners with ready assets in the U.S.
Is Amazon a Good Stock to Buy Right Now?
On the Street, Amazon has a Strong Buy consensus, based on ratings from 47 analysts. The average AMZN stock price target is $295.05, implying a 24.68% upside from the current price.
