Amazon & Rio Tinto Unlock ‘Lost’ Copper Reserves to Fuel AI Boom – Energy Costs Set to Rise
TUCSON, AZ – January 15, 2026 – In a move signaling the escalating energy crisis driven by artificial intelligence, Amazon has forged a two-year partnership with mining giant Rio Tinto to extract previously deemed unprofitable copper deposits. This breaking news underscores the frantic race among Big Tech companies to secure vital resources needed to power the ever-expanding network of data centers that underpin AI development. The deal, utilizing a novel extraction technology called Neuton, could reshape the copper market and significantly impact energy prices for consumers.
The Race for Copper: Why AI Needs This Metal
The insatiable appetite of AI for energy is no secret. Data centers, the digital engines driving AI advancements, are notoriously power-hungry. Copper, a crucial component in electrical wiring and cooling systems, is the lifeblood of these facilities. Amazon’s move isn’t just about securing supply; it’s about gaining a competitive edge. Whoever controls the flow of copper will likely dictate the pace of AI innovation. This urgency is already reflected in soaring copper prices, currently trading above $6 per pound with 2025 futures up a staggering 41%.
Neuton Technology: Reviving the ‘Dead’ Mines
The partnership centers around a revitalized copper mine near Tucson, Arizona, owned by Rio Tinto. What sets this operation apart is the application of Neuton technology – a groundbreaking process employing bacteria and acid to leach copper from low-grade ores previously considered economically unviable. According to Rio Tinto, a remarkable 70% of global copper reserves are locked within these “unprofitable” minerals. Neuton represents a prototype, a bold experiment to determine the scalability of this new extraction method. It’s a gamble that could unlock a vast, untapped resource, but also carries environmental considerations that will need careful monitoring.
Beyond the Headlines: A Historical Perspective on Resource Scarcity
The scramble for resources isn’t new. Throughout history, access to essential materials has shaped empires and fueled conflicts. From the Bronze Age’s reliance on tin and copper to the modern era’s dependence on oil, control over key resources has always been a source of power. The current situation with copper echoes past resource rushes, but with a uniquely 21st-century twist: the exponential growth of digital infrastructure. Unlike traditional industrial demands, the need for copper driven by AI is projected to increase dramatically, with S&P Global estimating a 50% surge by 2040, creating a potential 25% supply gap.
The Political Landscape: Trump Tariffs and Energy Policy
Adding another layer of complexity is the potential for new tariffs on copper products proposed by former President Donald Trump. Such duties would further inflate prices and exacerbate supply chain issues. Even without these tariffs, the long lead time required to bring a new mine into operation – often exceeding twenty years – presents a significant challenge. The current administration’s energy policy, leaning towards increased drilling rather than a full embrace of green energy initiatives, also casts a shadow over long-term sustainability.
The ‘AI Tax’ and the Public Backlash
The rising cost of powering AI isn’t being absorbed solely by tech companies. Consumers are already feeling the pinch in the form of higher electricity bills. Microsoft, recognizing the potential for public resentment, has pledged to help offset these costs and collaborate with local communities. Brad Smith, Microsoft’s president, rightly points out that profitable tech companies should shoulder a greater share of the burden. Trump has echoed this sentiment, praising Microsoft’s commitment and suggesting other tech giants follow suit. The political optics are clear: asking the public to subsidize the AI revolution is a risky proposition.
The Amazon-Rio Tinto deal is more than just a business transaction; it’s a symptom of a larger, systemic challenge. The relentless demand for energy to fuel the AI revolution is forcing companies to explore unconventional solutions and confront difficult trade-offs. As the world becomes increasingly reliant on artificial intelligence, securing a sustainable and affordable energy supply will be paramount – a challenge that demands innovation, collaboration, and a willingness to address the economic and social implications for everyone.
