SANTIAGO, March 5, 2026, 12:03 CLST
- Codelco and Microsoft have entered into an 18-month agreement focused on artificial intelligence, automation, and digital security in mining.
- Microsoft is moving deeper into heavy industry, expanding its AI tool sales beyond just tech and finance.
- Big Tech’s ramp-up in AI computing is running into stricter data-center power limits.
Codelco, Chile’s state-run copper producer, has entered into an 18-month memorandum of understanding with Microsoft Corp (MSFT.O), the miner said Thursday. The agreement will see both firms explore collaboration on artificial intelligence, advanced analytics, automation, and digital security across mining operations. Financial details weren’t provided. 1
Miners are hunting for ways to boost output and improve safety, all while dealing with declining ore grades and mounting expenses. Microsoft, for its part, sees this deal as a fresh chance to extend its AI ambitions beyond its core tech and office software business.
Power supply is a stubborn hurdle amid the AI boom. Microsoft, Google, Meta, and Amazon agreed Wednesday at the White House to pick up the tab for new data center energy. Still, Jon Gordon, director at clean energy group Advanced Energy United, cautioned, “Hyperscalers paying for the generation doesn’t get it online any faster.” 2
The companies described the Codelco deal as an extension of a partnership spanning over 27 years, this time adding shared governance, pilot projects, and training for workers on new technology. “Large volumes of data” need processing as digital transformation picks up, Codelco CEO Rubén Alvarado said. Microsoft Latin America president Tito Arciniega pointed to AI’s potential to boost safety and efficiency across operations. 3
Artificial intelligence, the kind of software that picks up patterns in data, has shifted beyond mine planning and now finds its way into daily operations. The term “advanced analytics” gets thrown around for anything that sifts through sensor streams and production records—hunting for early signs of trouble or squeezing more from processes before they go off track.
Cybersecurity is right at the center of this shift. As mines wire up their trucks, drills, and control rooms, those operations start to resemble tempting targets as much as they do traditional factories.
The deal only lays out a framework—it’s not the same as placing an order. Getting industrial AI projects off the ground often hits snags: poor data, pushback from staff, and hefty costs to modernize equipment and networks at large facilities.
Microsoft isn’t the only one going after these workloads. Amazon Web Services and Google Cloud have rolled out their own “industry” offerings, too. Big operators, for their part, tend to split projects among different suppliers—it helps them sidestep vendor lock-in.
Codelco and Microsoft agreed on an initial 18-month term. There’s still no word on when a larger expansion could take place, or what the price tag might be if the pilots move to full-scale deployment.
