The International Energy Agency's Electricity 2026 report projects that US electricity consumption will rise by close to 2 percent annually on average through 2030, more than twice the rate of growth recorded over the past decade, with data center expansion identified as the single largest driver. The agency's analysis found that data centers are expected to account for roughly 50 percent of total US electricity demand growth out to 2030.
US electricity demand increased 2.1 percent in 2025, following 2.8 percent growth in 2024, according to the report. The agency projects total US electricity use will add more than 420 terawatt-hours over the next five years, with the buildings sector, which includes data centers alongside residential and commercial space cooling and heat pump adoption, accounting for the largest share of new demand.
Globally, data center electricity consumption climbed roughly 17 percent in 2025, and electricity use specifically tied to AI-focused data centers surged 50 percent during the same period. The IEA projects total global data center electricity consumption could exceed 1,000 terawatt-hours in 2026, an amount the agency described as roughly equivalent to the entire electricity consumption of Japan.
The report frames the current growth trajectory as part of what it calls the arrival of the Age of Electricity, in which global electricity demand is expected to grow at least 2.5 times faster than overall energy demand through 2030. Worldwide electricity demand is projected to increase at an average annual rate of 3.6 percent between 2026 and 2030, up from 2.8 percent over the prior decade, with data centers, electric vehicles, and space cooling identified as the primary drivers behind the acceleration.
Source: International Energy Agency – https://www.iea.org/reports/electricity-2026/demand