Amazon Inks Copper Supply Deal with Rio Tinto for AI Infrastructure
January 15, 2026
The rapid global expansion of artificial intelligence infrastructure is intensifying demand for a foundational industrial material: copper. As the essential conductor in data center power systems, wiring, and cooling, copper has become a critical and increasingly scarce resource for Big Tech's AI ambitions, with supply constraints posing a potential bottleneck for growth.
In a strategic move to secure this vital commodity, Amazon Web Services (AWS) has entered a two-year agreement with mining giant Rio Tinto's Nuton venture. The deal, reported by The Wall Street Journal, ties copper supply directly to AWS's expanding network of AI data centers. The copper will be sourced from the recently restarted Johnson Camp mine in Arizona, which utilizes Rio Tinto's proprietary Nuton bioleaching technology. This operation became one of the first new sources of U.S. copper production in over a decade when it resumed last year. The agreement is set to provide AWS with approximately 14,000 metric tons of copper cathode over a four-year period.
While substantial, this volume represents only a fraction of the copper required for modern AI facilities. Industry data from the Copper Development Association indicates that an average data center uses between 5,000 to 15,000 tons of copper, with the largest hyperscale facilities demanding tens of thousands of tons more for their extensive electrical and thermal management systems. Amazon's director of worldwide carbon, Chris Roe, emphasized the company's broader sourcing strategy, stating, "We work at the commodity level to find lower carbon solutions to drive our business growth... and it absolutely means copper with regard to our data centers."
Beyond a simple procurement deal, the partnership includes a technology exchange. AWS will supply cloud computing and data analytics support to help Rio Tinto optimize copper production and recovery at the Nuton site. In return, the copper will be channeled to manufacturers that produce components for AWS data centers. Rio Tinto highlights the environmental benefits of its process. Katie Jackson, chief executive of Rio’s copper business, told The Journal, "It’s not just the fact that we’re processing ores that otherwise would not have been economic to process, but also that we do it at lower carbon and lower water intensity. It’s great to see that there are customers who see that as part of the value proposition."
This agreement underscores a significant shift in the data center industry, where tech giants are moving beyond energy procurement to directly secure the physical materials required for construction. It reflects growing concerns over commodity scarcity, as copper prices soared to near-record levels last year, exceeding $6 per pound, driven by robust demand and global supply anxieties. For the sector, such vertical integration strategies may become essential to ensure the reliable and sustainable build-out of AI-capable infrastructure, potentially setting a precedent for similar deals involving other critical minerals.
Source: foxbusiness
