Global electricity consumption by data centers is set to exceed 1,000 terawatt-hours in 2026, roughly equivalent to the entire electricity use of Japan, according to the International Energy Agency. The figure marks a steep climb from 460 terawatt-hours in 2022, when data centers accounted for about 2 percent of global electricity use.

The United States leads the increase. The IEA projects US data center power demand at around 260 terawatt-hours in 2026, while European data center demand sits near 150 terawatt-hours. Artificial intelligence is the dominant driver, with the IEA estimating that the AI industry will consume at least ten times its 2023 electricity demand by 2026.

Cryptocurrency adds to the load. The agency forecasts crypto related electricity use rising more than 40 percent to around 160 terawatt-hours by 2026. The growth is also highly concentrated in certain markets. In Ireland, data centers already account for roughly 21 percent of national electricity use, a share the IEA estimates could reach 32 percent by 2026.

The data underscores how quickly computing has become a major force in global power markets. A sector that represented a small slice of demand a few years ago now rivals the consumption of large industrial economies, reshaping how utilities, regulators, and grid planners forecast future load. The concentration of that demand in specific regions intensifies local pressure on generation and transmission capacity.

Source: International Energy Agency - https://www.iea.org/reports/electricity-2026/executive-summary