26 Jul 2024
Disruption
Copper : the invisible pillar of electrification
A must for artificial intelligence
Data centers and servers supporting artificial intelligence systems rely heavily on copper electrical components for efficient data transmission. Copper is also essential in cooling systems for IT equipment. With exponential growth in the use of artificial intelligence, electricity consumption from artificial intelligence could equal that of a country like Sweden by 2027.
*Source: De Vries, A. (2023). The growing energy footprint of artificial intelligence
A must for the energy transition
To capture the full benefits of the energy transition and meet the growing demand for electricity, it is necessary to reinforce Europe's often aging electricity distribution network. Its excellent properties make copper an essential element in the development of this electrical network.
Our convictions
Copper has qualities that make it attractive in many fields, such as AI, energy transition and electric vehicles, where alternatives are limited.
• Demand for copper is set to grow considerably over the next few years, while supply may struggle to keep pace.
• We support this theme in Groupama Global Disruption, an international equity fund that seeks to identify highly innovative companies in a number of areas (AI, environment, scarcity of resources, etc.).
A must for electric vehicles
Sales of electric vehicles rose by 33% between 2022 and 2023, from 10.3 to 13.7 million vehicles (source: IEA). On average, each electric vehicle requires over 80 kg of copper for its construction. This increase in production is accompanied by a growing demand for electricity, which also requires a significant amount of copper for the
electrical infrastructure.
Published by Groupama Asset Management - Head office: 25 rue de la ville l'Evêque, 75008 Paris - www.groupama-am.com
Updated 16/07/2024 Advertising communication likely to be addressed to non-professional customers.
DISCLAIMER
This is a marketing communication prepared for information purposes only. Groupama Asset Management shall not be liable for any use of the document by a third party without its prior written authorization. This information is based on sources we consider reliable, but we do not guarantee its accuracy, completeness, validity or timeliness. This document has been prepared on the basis of projections, estimates and assumptions which involve a degree of subjective judgment and are the expression of an independent opinion. Methodologies are available on request. Reference to a ranking or price is no guarantee of future performance. Before making any final investment decision, please refer to the prospectus and key information document available here : Groupama Global Disruption (groupama-am.com)