BT's massive network means that it could make a killing out of recycling old cables.
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
More than 22,000 metric tons have already been recovered from the system since BT started its network upgrade, with the metal costing around USD 8,500 per metric ton on the market. If the company sold all that material in the open market, it would have made revenue of USD 187 million. However, the massive AI-driven demand for copper has pushed prices to a record high of more than USD 14,000 per metric ton. The upgrade work is expected to continue well into the 2030s, with Openreach estimating that it could still recover up to 200,000 metric tons of material. That means the company could make an estimated USD 2.7 to 2.8 billion just from the sale of these old network cables.
The AI boom is pushing up demand for several industries — from high-tech products like memory and storage chips and jet engines to “exotic” materials such as rare earth elements and glass cloth fibers . Most people will not equate copper to AI data centers, especially as the PCBs used in their servers often contain so little of the metal, relatively speaking. AI data centers are also switching to optical interconnects and silicon photonics , meaning the internal networks of these data centers will increasingly rely on fiber optics.
However, data centers are forecast to use 194 gigawatts of power by 2035 , and all this power can only be transferred via metal cables. While you can also use aluminum wires to transmit power, copper is often the preferred choice for its stability, better electrical conductivity, increased durability, and superior thermal performance. So, as AI hyperscalers expand their operations and build more data centers, the demand for copper wires will also increase accordingly. Utility providers will also need to purchase more cables as they upgrade the grid to deliver the electricity needed by the AI infrastructure.
Cargo thieves target AI data center supplies in $1.3 million heists
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/networking/SPONSORED_LINK_URL
- https://www.tomshardware.com/networking/national-telecoms-provider-to-make-usd2-7-billion-selling-old-copper-in-ai-boom-bt-to-strip-200-000-tons-from-legacy-network#main
- https://www.tomshardware.com/membership
- Bring the Fire: Play Games on GeForce NOW With New Firefox Browser Support
- Chinese court freezes $318 million in Nexperia assets as Wingtech presses to regain control — Dutch chipmaker says seizures won't affect day-to-day operations
- China's EUV technology 'at a similar stage to ASML in 2004,' analyst claims — Beijing's semiconductor industry remains well behind Western rivals
- FBI investigating 153 million US and Canadian driver’s licenses leaked on Russian cybercrime forum, including that of US SecDef Pete Hegseth — data is suspected
- Dell's new 14-inch laptops take on the MacBook Neo in a new way — ports and colors
Informational only. No financial advice. Do your own research.