Global electricity consumption increased by 4.3% year-on-year in 2024, according to estimates from the International Energy Agency (IEA). This growth accelerates compared to the 2.5% recorded in 2023. According to IEA forecasts, electricity demand will continue to rise at an average annual rate of at least 3.9% until 2028.
Energy consumption took center stage in discussions during one of the most influential conferences in the energy sector – CERAWeek 2025 in Houston. The Bloomberg Television team, led by Alix Steel, provided extensive coverage of the event, featuring interviews with top executives and officials involved in developing the energy industry.
AI and data centers fuel unprecedented surge in global power demand
The accelerated growth in global electricity demand has led experts to refer to the current era as the “Age of Electricity“, describing the market as unprecedented and even “sexier than ever.”
“Power is as cool and sexy as it has ever been. I started in this business in 1983. It’s been a zero-demand growth business for a long time, and suddenly, we woke one day and we’re in a demand growth supercycle. So, to the extent the power can ever be sexy, this is the time,“ shared Larry Coben, CEO of NRG Energy.
The hottest topic right now is consumption related to data centers and AI. In the coming years, managers will focus primarily on this segment of the market, even though it is not currently the largest source of demand.
Scott Strazik, CEO of GE Vernova, said that “still a very small proportion of our backlog is directly attached to AI. When you really think about it, there are only about 60 gigawatts of data centers globally today, and only 15% of that’s really explicitly related to AI. Most of it’s still in the cloud and storage. So that’s why there’s so much growth to come because we’re really just starting“.
Reindustrialization, EVs, and AI push global energy demand
Data centers, cloud services, and AI do not solely drive the unprecedented growth in energy demand in recent years. The increase also stems from economic growth in developing countries, onshoring in manufacturing, 5G, the Internet of Things, smart homes and offices, electric vehicles, and changes in household consumption.
Strazik also adds that “it’s really impossible to underwrite a case in which we don’t need substantially more electrical equipment and supply over the next decade. Yes, there are the data centers, but also, we’re reindustrializing parts of the US to an extent that is going to require more electrical load – EVs, home heating, and others“.
Meeting this demand cannot yet be achieved solely by increasing the capacity of renewable energy sources, according to most energy industry executives. Fossil fuels (such as natural gas) still play a leading role in the sector, and their position will not be displaced soon. However, this does not mean that the potential of the renewable energy sector is diminishing.
Trade tensions and tariffs
Among the potential risks to energy demand are increased tariffs on importing key raw materials into the US and the threat of a trade war triggered by changes in White House trade policy. Executives are taking this risk into account, but at this stage, they do not see a high likelihood of it causing significant disruptions in consumption or a recession.
“The priority for Trump’s administration is ‘we want more electricity for AI, for data centers, etc.‘. It’s all of the above more electricity, it could be gas, it could be nuclear, but it could also be renewable with batteries. So I’m optimistic,“ explained Patrick Pouyanné, CEO of TotalEnergies.
The topic of electricity demand, the factors driving it, and the possible sources for meeting it will also be part of the discussions at the Energy of Tomorrow conference by Investor Media Group. The event will take place on March 19 at Inter Expo Center Sofia.
In 2025, Energy of Tomorrow will offer more content, networking opportunities, guest speakers, and a bigger program as part of a full-day business event. Other key topics in the third edition of this specialized event will include green energy production and storage, energy efficiency opportunities, technological innovations and sector regulations, as well as successful practices for generating energy for business needs.
