IEA Reports Slower Global Energy Demand Growth in 2025 Led by Solar
The International Energy Agency's Global Energy Review 2026 shows global energy demand grew by 1.3% in 2025, with electricity demand rising faster at 3%. Solar power met most of the demand growth, followed by gas, amid slower economic expansion. In the U.S., data centers drove half of the power demand increase.
seekingalpha.comThe International Energy Agency (IEA) released its Global Energy Review 2026 on April 20, 2026, detailing trends in global energy consumption for 2025. 4% over the previous decade. Electricity demand grew by 3% worldwide in 2025, nearly triple the rate of overall energy demand growth.
Key Drivers of Demand
The rise in electricity use outpaced total energy consumption, driven by data centers and electric vehicles. In the United States, electricity demand rose by 2% in 2025, slower than the 2.8% growth in 2024 but more than three times the average over the prior decade. S.
power demand increase, with the buildings sector contributing 80% overall. A cold winter boosted space heating needs, with heating degree days up nearly 10%.
The IEA noted that electricity consumption grew much faster than overall energy demand.
Key Facts
Story Timeline
4 events- Today — April 20, 2026
IEA released its Global Energy Review 2026 analyzing 2025 trends.
3 sources@IEA · OilPrice.com · Grist - 2025 full year
Global electricity demand grew by 3%, driven by data centers and EVs.
2 sourcesOilPrice.com · @IEA - 2025 full year
U.S. power demand rose 2%, with data centers accounting for half the growth.
1 sourceOilPrice.com - 2024 full year
Global energy demand growth was higher than in 2025, at a rate above 1.3%.
2 sourcesOilPrice.com · @IEA
Potential Impact
- 01
Renewable energy investments will prioritize solar to meet rising electricity needs.
- 02
Gas suppliers will see sustained demand as a secondary source for energy growth.
- 03
Data center operators will face higher electricity costs amid continued expansion.
- 04
Policy makers will adjust strategies to address faster electricity demand over total energy.
- 05
Asian economies will adapt cooling strategies following reduced demand in 2025.
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