Global Electricity Demand Is Surging – What It Means for Businesses

Global electricity demand is accelerating at a pace we haven’t seen before.

The International Energy Agency’s latest Electricity 2026 report forecasts that global power demand will grow by more than 3.5% annually through to 2030 — rising at least 2.5 times faster than total energy demand. By the end of the decade, renewables and nuclear are expected to generate 50% of the world’s electricity, marking a major shift in the global power mix.

What’s driving this surge?

• Increased industrial electrification
• Rapid growth of electric vehicles
• Expanding data centres and AI infrastructure
• Rising cooling demand
• Strong growth across emerging economies, with advanced economies now returning to demand growth

At the same time, natural gas generation is projected to rise, coal is expected to decline, and investment in battery storage and grid flexibility is accelerating. Yet more than 2.5TW of renewable and storage projects remain stuck in grid connection queues, highlighting the strain on infrastructure.

The message is clear: electricity markets are entering a period of structural change.

What This Means for Businesses…

While the global transition gathers pace, businesses are facing a more immediate challenge: rising electricity costs and market volatility.

Since 2019, electricity prices have increased faster than incomes in many regions, impacting both households and industry. As demand intensifies and grids require significant upgrades — with annual grid investment needing to rise by 50% by 2030 — price pressures and market complexity are likely to continue.

For UK businesses, this makes energy strategy not just an operational issue, but a commercial one. For more information on how we can support your business contact us at hello@gleg.co.uk.