NEW YORK, July 7 — $1 billion. That is the annual cost copper theft from infrastructure inflicts on the U.S. economy, according to a 2022 report from the U.S. Department of Energy. And the problem is accelerating.
By the numbers: London Metal Exchange copper prices averaged $8,500 per metric ton in 2023, climbing from $7,200 in 2020 and $6,800 in 2019. As the metal’s value rises, so does the incentive to steal it.
A 2023 report from the National Insurance Crime Bureau documented a 15% increase in copper theft claims from construction sites compared to the prior year. The bottom line: AI is driving a construction boom in data centers, and those sites are prime targets. A typical hyperscale data center uses between 800 and 1,000 tons of copper for power cables, grounding, and networking.
Thieves operate at night, hitting unguarded sites and stripping wiring from unfinished buildings. The FBI issued an advisory in 2022 noting that scrap metal prices drive the crime, with copper selling for $3.50 to $4.00 per pound at scrapyards.
Northern Virginia offers a stark case study. The region hosts over 70% of the world’s internet traffic. Police there reported 12 copper theft incidents at data center construction sites in the first half of 2024, up from 5 in all of 2023.
Investors will note the trend has a clear catalyst. AI demand continues to grow, and data centers are sprawling operations that require enormous amounts of copper wiring. The construction sites are often vast, remote, and lightly guarded during off-hours.
That combination makes them attractive to thieves who can scrap the metal quickly for cash. The figure that matters for the construction industry: the 15% year-over-year jump in insurance claims tied to copper theft.
That number captures both the rising frequency of incidents and the growing financial hit to developers and contractors. For projects already facing supply chain delays and rising material costs, stolen copper adds another layer of expense and delay. The FBI’s advisory framed the problem in straightforward terms: as long as scrap metal prices remain high, theft will follow.
Copper’s price trajectory over the past several years supports that logic. The metal averaged $6,800 per metric ton in 2019, before the pandemic reshaped global commodity markets.
By 2020, it had ticked up to $7,200. By 2023, it had jumped to $8,500. AI data centers are particularly exposed.
The scale of copper required for a single hyperscale facility — 800 to 1,000 tons — means even a partial theft can halt construction. Thieves target power cables, grounding wires, and networking lines, all of which are often run through exposed conduit or laid in unfinished areas before walls go up. The National Insurance Crime Bureau’s 2023 report specifically flagged construction sites as the most vulnerable category.
The 15% increase in claims from those sites outpaced overall copper theft trends. Northern Virginia’s data center corridor has become a hotspot.
The region’s concentration of internet infrastructure makes it a natural target. Police data shows the problem escalated sharply in early 2024, with 12 incidents in just six months compared to five in all of 2023. The trend is expected to continue as AI demand grows.
More data center construction means more copper on site, and more opportunity for theft. Developers are likely to face pressure to increase security at construction sites, including better lighting, fencing, and surveillance.
For investors, the copper theft surge is a secondary cost to watch in the data center buildout. It adds to the already significant expense of constructing hyperscale facilities, and it introduces delays that can push project timelines. The FBI’s 2022 advisory remains the clearest framework for understanding the crime: scrap metal prices drive the behavior.
As long as copper sells for $3.50 to $4.00 per pound at scrapyards, the incentive to steal it will persist. And with prices trending upward, the math for thieves only gets better.
