Data center and AI demand drives copper and energy markets

The demand for copper and electricity is being driven by the expansion of data centers and artificial intelligence infrastructure. In the metals market, copper prices are currently reacting to potential U.S. tariffs, leading to 'pre-tariff positioning' where buyers stockpile inventory to avoid future costs. However, structural demand from data centers and power grids remains a fundamental driver for the metal.

In the energy sector, Vistra is seeing increased attention due to the rising power needs of AI applications. CIBC has upgraded Vistra's stock to 'Outperformer,' citing favorable prospects for U.S. electricity demand. There are ongoing discussions regarding the direct connection of large-scale consumers to existing power plants, such as the Comanche Peak nuclear plant operated by Vistra. Additionally, the U.S. Department of Energy has announced conditional funding of up to $4.2 billion to support nuclear plants as a key component of emission-free power supply.