Global electricity demand is expected to increase by 4% annually through 2027, according to the International Energy Agency (IEA). This growth rate surpasses the total consumption of Japan. Emerging and developing economies, particularly China and India, are projected to drive this growth, with China accounting for over half of the increase.
China’s power demand has grown faster than its economy since 2020, driven by a heavy industrial sector and rapid expansion of electricity-intensive manufacturing. The industry’s growth is also fueled by increasing adoption of air conditioning, data centers, and 5G networks. However, the global impact of data centers remains limited, with only around 1% of total electricity consumption currently.
India is expected to account for 10% of the global demand growth due to robust economic activity and rapidly rising air conditioning. The European Union’s growth rate has been revised down to 1.6% in 2025, reflecting a weaker macroeconomic outlook. This change indicates that EU countries may not recover to their pre-2021 demand level until at least 2027.
Low-emissions energy sources, such as renewables and nuclear, are expected to match global demand growth trends, further reducing coal’s share in the power mix. Solar is projected to be the second-largest low-emissions source by 2027, behind hydropower, while renewables are expected to surpass coal-fired generation by 2025.
Source: https://www.reuters.com/business/energy/global-electricity-demand-grow-by-4-through-2027-iea-says-2025-02-14