Global Electricity Demand to Surge by 4% Annually Through 2027, Says IEA

The International Energy Agency forecasts unprecedented growth driven by EVs, air conditioning, and data centers, with renewables expected to meet most of the demand.

The IEA projects global electricity demand to grow by 3,500 terawatt-hours annually through 2027, equivalent to adding Japan's yearly consumption each year.
Emerging economies, led by China, India, and Southeast Asia, are expected to account for 85% of the increase, with China's demand rising 6% annually.
Key drivers of the growth include the adoption of electric vehicles, air conditioning, and energy-intensive data centers, particularly in advanced economies like the U.S.
Renewable energy sources, especially solar, along with nuclear power, are forecasted to meet nearly all of the additional demand, helping stabilize global CO2 emissions.
Extreme weather events and grid resilience challenges highlight the need for greater flexibility and investment in clean energy to avoid reliance on fossil fuels.