The world isn't ready for the electricity surge that's coming, IEA warns, saying it's 'no longer limited to emerging and developing economies' | Fortune

"The report by the International Energy Agency said renewable energy, led by solar power, will grow faster than any other major source in the next few years and that coal and oil demand will likely peak globally by the end of this decade. The report noted that many natural gas projects were approved in 2025, due to changes in U.S. policy, indicating worldwide supply will rise even as questions remain about how it will be used. Meanwhile, global nuclear power capacity is set to increase by at least a third by 2035 after being stagnant for years."

"The IEA says building greater resilience in energy systems is especially important as data centers, heating and cooling, electrification and more drive energy demand. Investment in data centers is expected to reach $580 billion this year, exceeding investment in the oil supply, according to the report. Growing economies including India and nations in Southeast Asia, the Middle East, Africa and Latin America, will "increasingly shape energy market dynamics in the years," the IEA said, noting their potential for solar power."

"China, meanwhile, has accounted for half the global growth in demand for oil and gas, and more than half for electricity, since 2010. "In a break from the trend of the past decade, the increase in electricity consumption is no longer limited to emerging and developing economies," IEA Executive Director Fatih Birol said in a release. Birol said that electricity use is also rising in advanced economies."

Electricity demand is projected to rise much faster than overall energy consumption in coming decades, driven by data centers, heating and cooling, and electrification. Renewable energy, led by solar, will expand more quickly than other major sources, while coal and oil demand are likely to peak by the end of this decade. Many natural gas projects approved in 2025 signal rising global gas supply despite uncertainty about future use. Global nuclear capacity is set to increase by at least one-third by 2035 after prior stagnation. Growing economies and China will strongly influence future energy market dynamics, and investment patterns are shifting toward resilient electricity infrastructure.

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