Electricity demand to rise by nearly a third by 2035, Rystad estimates

Global electricity demand will rise by 30 percent over the next decade as the number of electric vehicles and data centers grows and buildings need more heating and cooling. The sources of this electricity, however, will change significantly. This was reported today by Rystad Energy, an energy-focused analytical and consulting company, in its report.

Traditional industries, such as iron and steel production, which played a major role in doubling electricity consumption over the past two decades, will be the biggest driver of demand growth. Data centers are becoming a significant source of demand growth, but their energy consumption will continue to represent a relatively small share of total consumption, accounting for just 3.5 percent in 2035.

According to the report, renewable electricity generation, particularly solar power, will be crucial to meeting higher demand. Renewables are expected to cover 55 percent of total electricity consumption by 2035, up from 34 percent this year. The rest will come from nuclear energy and fossil fuels.

Energy consumption remains highly concentrated, with the United States and China accounting for nearly half of the total. India will see the fastest relative growth, with its consumption more than doubling.