Global 2025 Power Demand Rose as EV, Data Centers Grew, IEA Says
(Bloomberg) -- Global power consumption grew 3% last year, driven partly by fast-growing demand from electric vehicles and data centers, according to the International Energy Agency.
Electricity demand grew around 2.3 times faster than total energy demand in 2025, according to the IEA’s Global Energy Review released Monday. Demand from EVs and data centers grew at 38% and 17% respectively, but industry, household appliances and commercial buildings remained the main growth drivers.
“In advanced economies, electricity demand expanded by a robust 1.6% year-over-year, with particularly strong growth in the United States,” it said. “Data centers accounted for around 50% of total electricity demand growth in the US, with additional growth coming from the residential, industry and transport sectors.”
In China too, electricity demand growth was strong, but greater efficiencies and slightly lower cooling demand kept it below 2024 levels, the report said. Overall, global energy demand growth slowed to 1.3%, slightly behind the previous decade’s average.
Solar was the largest contributor to growth in global energy supply for the first time in 2025, according to the IEA.
“Solar PV accounted for over a quarter of all of the world’s energy demand growth – more than any other source,” IEA Executive Director Fatih Birol said in the report. Natural gas took the second-largest share at 17%.
Global oil demand rose by 0.7%, aligned with IEA projections, reflecting the continued growth of electric vehicles, which trimmed demand for road fuels.
Coal use in China fell with the addition of greener energy, while demand for the dirty fuel increased in the US as high natural gas prices drove gas-to-coal switching in electricity generation. Still, the rate of coal demand growth slowed in 2025.
Battery storage was the fastest-growing power sector technology in 2025, with roughly 110 gigawatts of new capacity added. More than 12 gigawatts of nuclear power reactors began construction last year.
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