Global electricity demand is projected to grow 3.6% annually through 2030, roughly 50% faster than the average pace of the past decade, driven by data centers, AI, industrial electrification, electric vehicles, and cooling demand. Electricity consumption is increasingly outpacing broader economic growth for the first time in decades, signaling a structural shift in how energy is consumed.

China remains the largest contributor to demand growth, accounting for nearly half of the increase through 2030, while India and Southeast Asia are expected to play a growing role. In the U.S., electricity demand is forecast to rise nearly 2% annually, with roughly half of incremental growth tied to expanding data center capacity.

On the supply side, renewables and nuclear are expected to provide about half of global electricity generation by 2030. Solar remains the primary growth engine, but natural gas is also projected to expand as a reliability resource alongside intermittent renewables.

The report’s key warning is infrastructure-related: more than 2,500 GW of projects are currently stalled in grid connection queues worldwide. According to the IEA, expanding transmission capacity and grid flexibility may become as important as adding new generation in determining whether systems can meet rising demand reliably and affordably.

Source: International Energy Agency, Electricity 2026