Future minerals: a smart way to play the AI infrastructure boom?

While many investors are excited about AI, elevated tech-stock valuations have left some searching for alternative ways to gain exposure to this structural growth theme.

Future minerals offer an attractive, diversified, and real-world route to participate in AI's transformation – powering clean energy, robotics, and digital infrastructure.

Critical minerals: the backbone of AI growth

AI is often associated with intangible assets – algorithms, software, and cloud systems – but its implementation relies heavily on physical resources. Minerals like copper, uranium, and rare earths are indispensable in building AI infrastructure, including semiconductors, data centres, clean energy systems, and robotics. Supply constraints and rising demand create compelling upside potential for extractive companies.

Copper: powering AI infrastructure

Copper’s superior electrical conductivity and thermal efficiency make it essential for servers, cooling systems, and power grids.

BloombergNEF projects copper demand from new data centres will peak at 572,000 tonnes by 2028, while RBC predicts that accelerated AI adoption could push demand up by 18% by 2040, in a market already constrained by limited new supply.

Additionally, clean energy technologies like solar and wind are twice to five times more copper-intensive than fossil fuels, amplifying demand.

Uranium: fuelling AI's energy needs

AI’s appetite for electricity is immense. Data centres alone are expected to drive 2.5% annual US power demand growth [1]. As AI companies increasingly commit to clean energy, nuclear energy is gaining momentum due to its reliability and low-carbon footprint.

The World Nuclear Association forecasts a tripling of nuclear generation capacity by 2050, with uranium demand growing at over 4% compound annual growth rate (CAGR) through 2035, while supply lags behind at just 2% CAGR – setting the stage for potential deficits.

Rare earths: enabling robotics and automation

Rare-earth elements are integral for permanent magnets used in electric motors, robotics, and clean energy systems. AI-driven robotics is expected to grow exponentially, with Boston Dynamics estimating up to 1 billion humanoid robots operational by 2050. Each humanoid robot could require 3-4 kilograms of rare-earth magnets, while industrial robots may need up to 20 kilograms. This surge in demand is projected to drive a 50% CAGR in rare-earth consumption through 2035.

What does all this means for investors?

Incorporating mining exposure offers three distinct advantages:

Diversification beyond tech: future minerals offer exposure to AI without the concentration risk of mega-cap US tech stocks, adding diversification across sectors, regions, and market capitalisation.

Attractive valuations: mining companies like Capstone Copper trade at just 7x enterprise value to EBITDA (earnings before interest, taxes, depreciation and amortisation), compared to 27x for names like NVIDIA, offering better downside protection and income potential [2].

Clearer winners: unlike tech, where future leaders are uncertain, the mining sector’s top assets are already well known, giving investors access to the proven players in the AI supply chain.

How does this look in practice?

Investors seeking exposure to future minerals can benefit from focusing on high-quality, low-cost producers with strong long-term prospects. Here are three potential standout names:

Antofagasta (copper)

A pure-play copper miner based in Chile, Antofagasta owns high-quality assets in a region renowned for copper reserves. The company is expanding its operations through new copper projects and advanced processing technologies, unlocking resources from previously uneconomic deposits. With copper demand set to surge, Antofagasta is well-placed to benefit from AI-driven structural growth.

MP Materials (rare earths)

As the only rare-earth producer in the US, MP Materials is strategically positioned to benefit from rising demand and geopolitical tensions. The US Department of War (previously Defence) recently invested in MP Materials alongside a long-term offtake agreement for rare earths and permanent magnets, bolstering domestic supply chains. With Apple signing a supply deal for US-sourced rare earth magnets, MP Materials is emerging as a key player in Western-aligned critical mineral markets.

Kazatomprom (uranium)

Kazatomprom is the world’s largest and lowest-cost uranium producer, with environmental credentials enhanced by its innovative chemical pumping extraction method.  Based in the Republic of Kazakhstan, the company benefits from exposure to both spot pricing and long-term contracts, allowing it to capitalise on growing nuclear energy demand. As nuclear power becomes a cornerstone of AI’s energy needs, Kazatomprom’s leadership in uranium production positions it well for sustained growth.

Final thoughts…

The AI revolution is reshaping global infrastructure. Critical minerals are at the heart of this new world. From powering data centres to enabling clean energy and robotics, copper, uranium, and rare earths are essential to AI’s expansion.

With demand rising and supply constrained, future minerals offer a rare combination: exposure to a major structural growth theme, attractive valuations, and real-world diversification. For those looking to tap into AI without chasing overvalued tech stocks, this could be the smarter way to invest.

Companies are selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.

[1] https://sustainabilitymag.com/articles/ai-data-centre-power-demand-the-sustainability-challenge

[2] source: Bloomberg October 2025