Get ready for the "age of electricity"
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The world is entering a new era increasingly dominated by electricity, the International Energy Agency said.
Why it matters: Electricity use has grown at twice the pace of overall energy demand over the last decade, with China leading the way, IEA's new "world energy outlook" finds.
- Faster growth looms as the world moves toward EVs, wider use of AC and other appliances, and electrification of commercial buildings and industries.
Stunning stat: The agency sees electricity demand rising six times faster than overall energy consumption between 2023 and 2035.
What they're saying: IEA boss Fatih Birol, in a statement, said the "Age of Coal" and "Age of Oil" have defined energy history.
- "[W]e're now moving at speed into the Age of Electricity, which will define the global energy system going forward and increasingly be based on clean sources of electricity."
Threat level: While renewables are surging, overall "clean" sources of power haven't kept pace with power demand growth.
- As a result, global CO2 emissions from electricity jumped 20% from 2010-2023.
What's next: Under nations' current policies, IEA sees expansion of "clean" sources — including renewables and nuclear — outpacing power consumption increases by 20% by 2030.
- But much faster increases are needed for a climate-friendly, "net zero" pathway.
One more big thing from the IEA report: It's doing yeoman's work to put the data center boom in context.
Why it matters: The world's thousands of data centers can strain local power markets, especially because they're often bunched together.
- But looking globally, they're a "relatively small share of overall electricity demand growth to 2030" under today's policy and tech trends.
Yes, but: There's a considerable uncertainty band in both directions — after all, we're talking about the future!
- Still, nothing in IEA's range of estimates changes the underlying conclusion that they're a small part of the demand growth pie.
The bottom line: AI is turbo-charging data center power needs, but keep the wider picture in mind.
