AI has a power problem, and it is bigger than most people realise. Every model trained and every question answered pulls real electricity from a real grid, and that grid is starting to buckle. That strain is the reason uranium and copper are suddenly back in serious investment conversations.
Training and running AI models takes an enormous amount of electricity. The International Energy Agency recorded a 17 percent jump in global data centre electricity demand in 2025, and electricity use at AI focused facilities surged 50 percent in that same year. A closer look at how fast that curve is bending shows total data centre electricity consumption roughly doubling to around 945 terawatt hours by 2030, more than Japan's entire current electricity use.
Locally, that pressure is not abstract. Teraco data centre, Vantage, and Africa Data Centres are all expanding capacity right now to meet the same demand curve playing out worldwide.
Why nuclear energy is back on the table
Solar and wind cannot fill this gap on their own. AI workloads need power that runs continuously, not power that comes and goes with the weather. Nuclear energy is one of the few sources that delivers that kind of steady output without burning fossil fuels, which is why utilities across the United States, Europe, and Asia are extending reactor lifespans and approving new builds.
Uranium demand is shifting for real
More reactors need more fuel. A decade by decade estimate of how much uranium reactors will actually need puts global reactor uranium requirements at roughly 68,900 tonnes in 2025, climbing to just over 150,000 tonnes by 2040 under its reference scenario.
That is not a one year story tied to a single earnings cycle. Reactors take a decade or more to build, so uranium demand moves on that same slow timeline. It already shows up in uranium price charts, and it is the backdrop for renewed interest in enriched uranium and uranium mining more broadly.
Copper is stretched from every direction
A handful of things are pulling on the same limited supply of copper at once:
New reactors need copper wiring and cooling systems to connect to the grid.
Every expanding data centre needs copper for power distribution and cabling.
Grid upgrades built to handle rising electricity demand run almost entirely on copper conductors.
Electric vehicles and renewable installations were already consuming more copper before AI entered the picture.
An explanation of where the next copper shortage is likely to come from warns of a potential 30 percent copper supply shortfall by 2035, driven by declining ore grades and mine development timelines that now stretch past 15 years. A look at what upgrading the world's power grids will actually cost in raw materials points to the same squeeze, tying grid expansion directly to tightening copper supply chains.
South Africans do not need an IEA report to understand copper scarcity. Copper cable theft has strained Eskom and Telkom infrastructure for years, a problem that predates AI and adds extra pressure on a metal that was already tight before this new source of demand showed up.
Uranium and copper compared
Uranium | Copper | |
|---|---|---|
Primary link to AI | Fuels nuclear reactors for steady baseload power | Wires and connects the grid, reactors, and data centres |
Global demand shift | About 68,900 tonnes in 2025 rising to over 150,000 tonnes by 2040 (WNA reference scenario) | Potential 30 percent supply shortfall by 2035 (IEA) |
Demand timeline | Spans decades, tied to reactor construction schedules | Nearer term, layered on top of EV and grid demand |
South African relevance | Necsa and a long domestic mining history | Copper theft already strains Eskom and Telkom infrastructure |
Access through Luno | URAx | COPXx |
Is this demand story built to last
Two commodities, two different risk profiles. Uranium demand sits on reactor construction schedules that run for decades, so it does not swing on quarterly sentiment the way some assets do. Copper is messier. Electric vehicles, grid modernisation, and construction were already pulling on copper supply before AI entered the conversation, so a slowdown in AI spending would trim one part of the demand story, not remove it.
None of that guarantees returns. Commodity prices move sharply in both directions, and a decade of demand projections can still turn out wrong.
How to get exposure through Luno
Luno gives you access to both sides of this story through URAx and COPXx, tokenised instruments tracking uranium and copper exposure without needing a separate commodities trading account.
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Frequently Asked Questions
What is uranium used for?
Uranium fuels nuclear reactors, where controlled fission generates large amounts of steady electricity without burning fossil fuels.
Is nuclear energy renewable?
No. Uranium is a finite resource, so nuclear energy is not classified as renewable, though it is treated as a low carbon energy source in most national energy strategies.
Why is copper theft such a problem in South Africa?
Copper's high value and everyday use in cabling make it a frequent target for theft from Eskom and Telkom infrastructure, a problem that predates the current surge in global copper demand and adds extra strain on an already tight supply.
How do I invest in uranium and copper through Luno?
Luno offers URAx and COPXx, tokenised instruments tracking uranium and copper exposure, available in the Luno app alongside its other tokenised commodity products.
What is a tokenised ETF?
A tokenised ETF represents an exchange traded fund's underlying assets as a blockchain based token, giving investors exposure without a traditional brokerage account.
