Global electricity consumption is poised for its fastest growth in years, with the International Energy Agency (IEA) projecting a 3.6% increase in 2026, accelerating to 3.8% in 2027. This surge surpasses the 3% growth recorded in 2025 and is largely driven by the expanding use of artificial intelligence (AI), electric vehicles (EVs), and growing digital infrastructure.
Key factors behind the rise include:
- Increased industrial activity worldwide
- Rapid expansion of data centres
- Widespread adoption of electric vehicles
- Growing demand for air conditioning
The IEA forecasts that global electricity consumption will rise to 30,700 terawatt-hours (TWh) by 2027, up from 28,600 TWh in 2025. Despite volatility in energy markets, including disruptions to liquefied natural gas (LNG) flows through the Strait of Hormuz which have elevated electricity generation costs, demand remains robust.
Regional highlights:
- China: Electricity use expected to grow by 5.5% in 2026, supported by manufacturing and expanding EV charging networks.
- India: Projected 7% rebound in demand following weather-related slowdowns in 2025.
- United States and European Union: Demand anticipated to increase by nearly 2%.
The IEA also anticipates renewable energy will overtake coal as the leading source of electricity generation in 2026. Renewables’ share is expected to rise from 33% in 2025 to 37% by 2027, with solar photovoltaic generation increasing by approximately 600 TWh next year.
However, the agency cautions that extreme weather events, particularly a stronger-than-expected El Niño, could amplify electricity demand by raising cooling needs while potentially reducing output from hydropower and wind energy.
