Global electricity demand is set to surge 40% over the next decade, driven by emerging economies, AI, and rising air-conditioning needs, according to Casey Crownhartarchive page of MIT Technology Review. While China has led growth historically, other regions will contribute more in the coming years. AI and data centers are becoming major energy consumers, particularly in the U.S., where they may account for half of electricity demand growth by 2030. Solar and wind have overtaken coal in early 2025, signaling a shift toward cleaner energy, while nuclear capacity may expand. Crownhart writes:
One of the dominant storylines I’ve been following through 2025 is electricity—where and how demand is going up, how much it costs, and how this all intersects with that topic everyone is talking about: AI.
Last week, the International Energy Agency released the latest version of the World Energy Outlook, the annual report that takes stock of the current state of global energy and looks toward the future. It contains some interesting insights and a few surprising figures about electricity, grids, and the state of climate change. So let’s dig into some numbers, shall we?
We’re in the age of electricity
Energy demand in general is going up around the world as populations increase and economies grow. But electricity is the star of the show, with demand projected to grow by 40% in the next 10 years. […]
Data centers still make up less than 10% of the projected increase in total electricity demand between now and 2035. It’s not nothing, but it’s far outweighed by sectors like industry and appliances, including air conditioners. Even electric vehicles will add more demand to the grid than data centers.
But AI will be the factor for the grid in some parts of the world. In the US, data centers will account for half the growth in total electricity demand between now and 2030. […]
Together, solar and wind were the leading source of electricity in the first half of this year, overtaking coal for the first time. Coal use could peak and begin to fall by the end of this decade.
Nuclear could play a role in replacing fossil fuels: After two decades of stagnation, the global nuclear fleet could increase by a third in the next 10 years. Solar is set to continue its meteoric rise, too. Of all the electricity demand growth we’re expecting in the next decade, 80% is in places with high-quality solar irradiation—meaning they’re good spots for solar power.
Ultimately, there are a lot of ways in which the world is moving in the right direction on energy. But we’re far from moving fast enough. Global emissions are, once again, going to hit a record high this year. To limit warming and prevent the worst effects of climate change, we need to remake our energy system, including electricity, and we need to do it faster.
Read more here.