How fast global electricity demand is growing
Global electricity demand rose by 4.3% in 2024 — one of the strongest years in over a decade — and the IEA expects growth of around 3.3% in 2025 and 3.7% in 2026. Demand is now climbing faster than total energy demand as economies electrify.
Source: IEA — Electricity Mid-Year Update 2025 — global electricity use to grow strongly (2025)
What it means
Electricity demand growing near 4% a year, faster than in most of the past decade, means grids are tightening and power is becoming a more contested, more valuable input. For an industrial operator that raises the strategic value of cutting electrical waste, managing demand around peak prices, and locking in supply — because the cheapest kilowatt-hour is still the one you never use.
Context
The IEA attributes the acceleration to electrification of transport and heat, growth in cooling demand, and rapidly rising consumption from data centres. Data-centre electricity use alone climbed about 17% in 2025, though it still accounts for under 10% of total demand growth this decade. Forecasts carry uncertainty because they depend on economic growth and weather, so the year-to-year figures are best read as 'persistently strong' rather than precise.
How to interpret this data
About the source: This data comes from IEA. Public datasets like this are the foundation of fact-based decision-making in industry. When you see these numbers cited in vendor proposals or consultant reports, remember: the raw data is freely available, and the value is in how you interpret it for your specific plant and situation.
Where this matters: How to reduce industrial energy costs are built on insights like the data shown here. Rather than treat data in isolation, read the deeper guides to see how these trends translate into actionable levers for your plant.
Sector relevance: This dataset is especially relevant to Chemicals, Steel & Metals. These sectors face the trends and challenges you see in this chart daily — energy cost pressure, the push for decarbonization, adoption of AI and predictive maintenance. Use this data to benchmark your plant against the industry average and identify where you lag or lead.
How to use this data: Take the headline number but look deeper at the chart. Is it growing or shrinking? Which segments or regions drive the trend? Does your plant's data align, or are you an outlier? Outliers are often where the best opportunities hide — either an efficiency gap you can exploit, or a leading practice you can copy.
Related charts
Where industrial electricity goes
Electricity's rising share of industrial energy
Renewables' share of global electricity
Related topics
How to Reduce Industrial Energy Costs: Practical Quick Wins · Demand Response · Specific Energy Consumption (SEC)
Relevant to: Chemicals · Steel & Metals · Cement