Copper is a key part of data center infrastructure necessary to support booming artificial intelligence (AI) growth.
While the market continues to speculate over the possibility of a merger between Rio Tinto (RIO +0.49%) and Glencore, the news of a strategically important deal between Amazon (AMZN 0.68%) Web Services (AWS) and Rio Tinto appears to have fallen off the radar. However, discerning investors shouldn’t ignore this deal because it could spark game-changing developments for Rio Tinto, artificial intelligence (AI), and the data center industry.
Rio Tinto and Amazon Web Services agree on a strategic collaboration
In the end, it’s very simple. Amazon Web Services is a dominant force in cloud computing and AI, and it needs data centers to host data and provide computing power. In turn, data centers need copper for their infrastructure. In fact, S&P Global believes that AI and defense will boost copper demand by 50% by 2040, creating a significant shortfall.
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