Amazon secures first US-mined copper in decade as AI data centers strain global supply

Amazon Secures Rio Tinto Copper Deal for Expanding Infrastructure

Amazon has finalized an agreement with Rio Tinto to purchase US-mined copper from the Arizona Johnson Camp mine, representing the first new domestic copper supply in more than a decade 1

1

. The two-year deal addresses mounting copper demand driven by aggressive AI expansion, as companies that build parts for Amazon Web Services will use the material for AI data centers 3

3

. The agreement comes as industry watchers warn that only 70% of 2035 demand could be met, with copper prices climbing above $13,000 per metric ton on the London Metal Exchange—a 40% increase in the past year 3

3

.

Low-Carbon Nuton Technology Reshapes Extraction Process

Nearly half of the copper will be extracted using Rio Tinto's low-carbon Nuton Technology, which relies on bioleaching through naturally occurring microorganisms applied to primary sulfide ores 2

2

. The process produces 99.99% pure copper cathode directly at the mine site, eliminating the need for traditional concentrators, smelters, and refineries 1

1

. Rio Tinto deployed Nuton at industrial scale at the Johnson Camp mine last month, using bacteria that naturally produces heat when applied to certain rock types to extract copper 3

3

. The extraction method uses substantially less water and generates lower carbon emissions compared to conventional methods, while enabling recovery from ore previously classified as waste 2

2

.

Supply Falls Short of Data Center Construction Needs

Despite the breakthrough, the deal will satisfy only a sliver of Amazon's requirements for data center construction 1

1

. Over four years, the Arizona Nuton output is expected to reach 14,000 metric tons, with an additional 16,000 tonnes from conventional run-of-mine leaching, bringing total delivery to nearly 30,000 tonnes 1

1

. Each hyperscale facility requires tens of thousands of tons of copper for wiring, cables, circuit boards, and electrical systems that power compute infrastructure 1

1

3

3

. This means the agreement covers only a small fraction of AWS demand, with less than half delivered using the more environmentally friendly Nuton method 2

2

.

Supply Chain Resilience and Amazon's Climate Pledge Drive Strategy

Kara Hurst, Amazon's Chief Sustainability Officer, emphasized that "Amazon's Climate Pledge goal to reach net zero carbon by 2040 requires us to innovate across every part of our operations, including how we source the materials that power our infrastructure" 1

1

. She described the collaboration as "exactly the kind of breakthrough we need—a fundamentally different approach to copper production that helps reduce carbon emissions and water use" 2

2

. Securing access to lower-carbon materials produced close to home strengthens both supply chain resilience and the ability to decarbonize at scale, particularly as the company invests in next-generation carbon-free energy technology 1

1

.

Upstream Materials Access Critical for AI Infrastructure Growth

Beyond physical supply, the deal gives AWS an early foothold in upstream materials tied to AI-driven infrastructure growth 2

2

. Valued for its high electrical conductivity, copper remains essential for power grids, electric vehicles, and infrastructure critical to the energy transition 3

3

. AI sector growth is expected to boost global copper demand 50% by 2040, though analysts have warned that supply shortages could fall far short, sparking a rush to ensure access 3

3

. Copper availability represents a practical constraint on large-scale AI deployments, including LLMs, making the material a strategic priority as tech companies race to build out compute capacity 2

2

. The move underscores sustainability concerns while highlighting the gap between current mining capacity and the voracious appetite of modern AI infrastructure.