IEA sees global electricity demand up 3.4% by 2026

The International Energy Agency (IEA) said the pace of growth in global electricity demand is likely to rise on average by 3.4% from 2024 through 2026, thanks to improved economic prospects that will contribute to boosting demand in developed and emerging countries alike.

This came despite global growth in electricity demand easing slightly to 2.2% in 2023, down from 2.4% in the year before, given the pullback in electricity consumption in advanced economies, the agency said in its “Electricity 2024” report issued today, Jan. 24.

China, India and many Southeast Asian countries, according to IEA, witnessed strong growth in electricity demand last year. This contrasts with developed countries that suffered from a weak economic environment and high inflation, which negatively affected their industrial production, IEA added.

“Particularly in advanced economies and China, electricity demand will be supported by the ongoing electrification of the residential and transport sectors, as well as a notable expansion of the data center sector,” the agency wrote.

Global electricity demand from data centers, cryptocurrencies and artificial intelligence could more than double over the next three years. After globally consuming an estimated 460 terawatt-hours (TWh) in 2022, data centers’ total electricity consumption could reach more than 1 000 TWh in 2026,” it added.