Copper Costs Surge as Supply Disruptions and Infrastructure Demand Converge

SEATTLE (Scrap Monster):  Copper prices have risen nearly 30% over the past year, according to the Producer Price Index (PPI) tracked by the Bureau of Labor Statistics. The increase has been driven by global supply disruptions and accelerating demand from the power infrastructure needed to support the data center boom.

For construction firms, the increased prices will likely carry direct consequences. Copper is a key construction input, particularly for power infrastructure, and elevated and still rising prices are likely to pressure project costs and profit margins.

Middle East Conflict Aides Copper Price Rise

Renewed U.S.-Iran hostilities have pushed crude oil prices higher as Strait of Hormuz shipping lanes remain disrupted. That matters for copper on two fronts. Higher oil costs make the energy-intensive mining and smelting process more expensive, while the shipping disruptions have cut off flows of copper and related materials moving through the Middle East.

Those disruptions have helped push the PPI for copper up 29.7% from June 2025 to June 2026. That increase has far outpaced broader construction materials inflation, which has still risen 9% year-over-year.

Copper prices have surged over the past year, far outpacing the broader rise in construction material costs. The increase has been driven by global supply disruptions and accelerating demand from the power infrastructure needed to support the data center boom. Image: ConstructConnect

Power Infrastructure Demand Amplifies the Pressure

The increase in copper prices comes as Power Infrastructure, a copper-intensive construction subcategory, has seen surging demand over the past several years amid data center growth and broader electrification.

Power Infrastructure construction starts climbed over 400% from 2021 to 2025, rising from $9 billion to $37.1 billion. That growth has driven demand for copper-intensive components — electrical wiring, transformers, renewables, and generators — all of which are becoming more expensive as copper prices climb.

What it Means for Construction

Copper prices have climbed nearly 30% over the past year, driven by global supply disruptions and accelerating demand from data centers and electrification. The metal's central role in electrical infrastructure means it is a significant consideration for pricing and purchasing strategies.

With geopolitical tensions still unresolved and power infrastructure demand still growing, copper prices could rise further. For construction firms, that outlook may require a reworking of bidding strategies and locking in pricing early or including escalation clauses to protect margins.