Global electricity demand expected to grow 4% annually through 2027

Industry, data centers, and air conditioning are all expected to drive some of the fastest growth in electricity demand in years, according to International Energy Agency forecasts.

The agency predicts in a forecast released Friday the world will need 4% more electricity annually through 2027. Meeting that demand will require adding more generating capacity than all of Japan — every year. 

While data centers in the U.S. have stolen headlines and the attention, emerging and developing economies will likely drive 85% of that growth. Chinese industries, including solar panel, battery, and electric vehicle manufacturing, will help drive the country’s annual electricity growth at a 6% clip, down slightly from last year.

Growth in the U.S. will be lower than China though still significant, adding as much demand through 2027 as California has today.

Low-carbon sources, mostly renewables and nuclear, are expected to cover nearly all of global demand growth, the agency said.