Three Things to Know About the Future of Electricity

Why It Matters

The rapid expansion of electricity demand, especially from climate‑driven cooling and AI‑intensive data centers, will strain grids and shape investment priorities, while the declining role of coal and growth of renewables present a pivotal opportunity to curb emissions—but only if the transition accelerates to meet climate targets.

Summary

The International Energy Agency’s latest World Energy Outlook projects global electricity demand to surge 40% over the next decade, driven largely by rising air‑conditioning use and temperature increases that will add roughly 500 GW of peak load by 2035. While data‑center investment is set to exceed $580 billion in 2025, AI‑related loads will account for less than 10% of total electricity growth worldwide, though in the United States they could represent half of the demand increase through 2030. Coal’s share of generation is expected to fall, with solar and wind already overtaking it in the first half of the year and nuclear capacity projected to grow by a third over ten years. Despite these shifts, global emissions are still on track for a record high, underscoring the urgency of accelerating the transition to clean power.