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EVs, AI data centers push global electricity demand higher
20 Apr 2026

The International Energy Agency (IEA) has revealed a significant increase in global power consumption, with a 3% rise last year.

The surge is partly attributed to the rapid growth of electric vehicles (EVs) and data centers, while industry, household appliances, and commercial buildings remained the main growth drivers.

According to IEA's Global Energy Review, electricity demand grew at an astonishing rate of 2.3 times faster than total energy demand in 2025.

Demand from EVs grew by 38%
Sectoral impact

The IEA report highlights that the demand from EVs and data centers grew by 38% and 17%, respectively.

However, it was the industrial sector, household appliances, and commercial buildings that remained the main drivers of this growth.

In advanced economies, electricity demand grew by 1.6% year-on-year with the US showing particularly strong growth in this regard.

Data centers' role in US electricity demand surge
US growth

The IEA report notes that data centers accounted for nearly half of the total electricity demand growth in the US. The residential, industry, and transport sectors also contributed to this increase.

In China, though electricity demand growth was strong, improved efficiencies and slightly lower cooling demand kept it below 2024 levels.

Solar power leads global energy supply growth
Renewable surge

For the first time in 2025, solar power was the largest contributor to global energy supply growth.

"Solar PV accounted for over a quarter of all of the world's energy demand growth - more than any other source," said IEA Executive Director Fatih Birol.

Natural gas followed with a 17% share, highlighting its role in meeting rising global energy demands.

Global oil and coal demand trends
Fuel dynamics

Global oil demand rose by 0.7%, in line with IEA projections, owing to the continued rise of electric vehicles that reduced road fuel consumption.

In China, coal use fell due to the adoption of cleaner energy sources.

However, in the US high natural gas prices prompted gas-to-coal switching in electricity generation resulting in an increase in coal demand.