The 500,000-ton typo: Why data center copper math doesn’t add up

A significant issue has emerged regarding the estimation of copper usage in data centers, stemming from Nvidia's recent technical claim indicating that a single 1 GW data center could potentially consume half a million tons of copper. This figure, seemingly sensational, raises concerns about the accuracy of such projections. It's noted that Nvidia might have mistakenly meant to indicate 'half a million pounds,' equating to roughly 226 tons. This miscalculation could misinform market participants and skew expectations regarding copper demand. Goldman Sachs previously warned that any copper price breakout could be short-lived, highlighting the necessity for a sober analysis amidst the rising metal prices influenced by potential undersupply from long-term mining dynamics.