AI-driven power demand reshapes global energy transition

Artificial intelligence is increasing electricity consumption to levels comparable with whole cities, turning power grids into strategic infrastructure and positioning critical minerals as the new oil. Investment managers note that control over energy will shape economic growth over the next decade.

The International Renewable Energy Agency (IRENA) projects that by 2050, 54 % of global energy consumption should be electrified, with 92 % of that electricity generated from renewable sources. The European Commission has presented an Action Plan for Electrification, aiming to make Europe the first fully electrified continent. The plan seeks to cut CO₂ emissions and reduce reliance on imported fossil fuels, but current electricity shares and infrastructure constraints make the targets challenging, especially for high‑temperature industrial processes.

Spain’s National Integrated Energy and Climate Plan targets 35 % of electricity in total energy consumption by 2030, up from the current 25 %, highlighting the need for expanded transmission and distribution networks and accelerated renewable deployment.