Global Power Demand Projected to Surge 30% by 2035, Driven by Data Centers

Global power demand is forecast to increase by approximately 30% by 2035, a significant surge primarily driven by the expanding needs of data centers and broader electrification efforts. This projection signals a historic energy transition globally, as highlighted by The Kobeissi Letter, which stated, "> Global power demand is set to surge +30% by 2035." The increasing demand underscores a critical shift in the world's energy landscape, requiring substantial changes in power generation and infrastructure.

Data centers are expected to play a disproportionately larger role in this demand, with their contribution to total global power consumption estimated to rise from 1.5% to 3.5% by 2035, according to The Kobeissi Letter. The International Energy Agency (IEA) projects that global electricity consumption for data centers could double to around 945 TWh by 2030, largely fueled by the rapid growth of artificial intelligence. Some analyses, like Deloitte's, suggest AI data center power demand alone could grow more than thirtyfold by 2035, from 4 GW to 123 GW, posing considerable challenges for existing grids.

To meet this escalating demand, renewable energy sources are poised for substantial growth. The Kobeissi Letter noted, "> renewables will supply 55% of total electricity over the next decade, up from 34% this year, with solar leading the expansion." The IEA further indicates that over 450 TWh of additional renewable generation will be required to meet data center needs alone by 2035, reflecting technology companies' increasing investment in clean energy solutions. This shift aims to transition the data center electricity mix from 40% clean power to 60% clean power by 2035.

Geographically, the United States and China currently account for approximately 50% of global power usage, as stated by The Kobeissi Letter, and are expected to remain major drivers of demand. India is anticipated to experience the fastest growth, with its power consumption projected to more than double by 2035. This rapid increase presents both opportunities for clean energy investment and significant challenges for grid infrastructure, potentially leading to continued reliance on some fossil fuels to ensure stability.

The anticipated surge in global power demand, coupled with the rapid expansion of data centers and the accelerating shift towards renewables, marks a pivotal moment in the world's energy transition. As The Kobeissi Letter concluded, "> The world is entering a historic energy transition." Balancing the immense power needs of emerging technologies with sustainable generation methods will be crucial for managing the environmental impact and ensuring energy security worldwide, necessitating significant investment in both renewable capacity and grid modernization.