Global electricity demand enters the ‘Age of Electricity’

The International Energy Agency (IEA) has identified a transition into the ‘Age of Electricity,’ noting that global electricity demand is growing at more than twice the rate of total energy demand. In 2025, while overall energy demand grew by 1.3%, electricity demand rose by approximately 3%, adding roughly 800 terawatt-hours to the global system.

Key drivers of this surge include the rapid adoption of electric vehicles, heating and cooling technologies, and industrial electrification. Notably, data centers accounted for nearly half of all electricity demand growth in the United States in 2025. Solar PV emerged as the largest contributor to global energy demand growth, meeting over a quarter of the increase.

This shift is creating significant political and economic pressures. In the United States, rising electricity prices and concerns over grid reliability have become central to political debates, exacerbated by a shortage of generating capacity following the loss of coal plants. Similarly, Europe faces challenges regarding the costs of its energy transition and dependence on imported natural gas.