As the rush for copper in data centers intensifies, Ivanhoe Electric (IE.US) holds one of the top new copper mines in the United States, making it highly sought after.

Zhitong Finance APP has learned that as the rapid expansion of data centers and power grids boosts copper demand, exploration and development company Ivanhoe Electric (IE.US) is holding in-depth discussions with potential buyers regarding copper production from its Arizona project.

CEO Taylor Melvin said in an interview that copper from the Santa Cruz mining project has attracted interest from traditional traders as well as potential strategic partners seeking to secure supplies for U.S. industry. He declined to reveal the names of the parties involved in the negotiations.

Amidst a global race to build AI infrastructure, copper supplies are tightening and prices are hovering near historic highs. Ivanhoe Electric, founded by mining billionaire Robert Friedland, holds a range of mining projects including Santa Cruz and is working with U.S. government export credit agencies on a debt financing plan of up to $1.1 billion for the mine.

Melvin stated that with global copper demand set to outpace supply, the need for new domestic capacity in the U.S. is especially urgent.

The CEO said, “To close this gap, we need much more than just the Santa Cruz project.”

He added that offtake agreements for the Santa Cruz project may include financing arrangements. In addition to the proposed debt deal with the Export-Import Bank of the U.S., Ivanhoe Electric is also in talks with about a dozen commercial banks regarding project financing.

As new data center deals come online rapidly, major cloud computing service providers with heavy copper needs have started to lock in future supplies. Processes that can speed up copper production are highly attractive to buyers.

Earlier this year, Amazon agreed to purchase copper from a Gunnison Copper mine in Arizona, produced using Rio Tinto’s proprietary leaching technology, which requires no traditional smelting and refining and will ultimately be used in Amazon’s data centers.

Melvin stated that Santa Cruz will use an on-site process—relatively new in the U.S.—to produce cathode copper, bringing buyers closer to finished products like wire rods, cables, and copper foil. Ivanhoe has consistently promoted this process as part of its low-emissions operational plan.

The first phase of the mine is expected to cost $1.4 billion, with the aim of achieving first production in 2029. Melvin said that if combined with adjacent resources, Santa Cruz is expected to become one of the top copper-producing regions in the United States.