Gasgoo Munich- Global energy demand growth is set to slow to 1.3% in 2025, yet electricity consumption will climb 3% year-on-year, according to the International Energy Agency’s (IEA) Global Energy Assessment report released on April 20. Electric vehicles and data centers are emerging as the primary engines driving that surge in power demand.The report notes that 2025's 1.3% growth rate falls slightly below the 1.4% average of the past decade and marks a significant deceleration from 2024. This slowdown is largely attributed to a cooling global economy, fewer extreme heat events, and the widespread adoption of energy-efficient technologies.In contrast to the broader slowdown, power demand is accelerating to 3% — roughly 2.3 times the rate of total energy growth. This divergence highlights a trend of sluggish overall energy expansion alongside robust electricity consumption.Breaking down the demand structure, electric vehicles and data centers stand out as the key drivers. Global electricity demand from EVs is projected to surge 38% in 2025, while data center consumption will jump 17%, making them the main sources of incremental growth.Image Source: International Energy AgencyRegionally, developed economies are seeing steady power demand growth of 1.6%. The United States is posting particularly strong gains, with data centers accounting for roughly 50% of the country’s incremental demand. China continues to see growth, though the pace has slowed compared to 2024 due to improved energy efficiency and reduced cooling needs.The IEA emphasizes that industrial production, residential use, and commercial buildings remain the bedrock of global power demand. However, the widespread adoption of EVs and the expansion of AI-driven data centers are continuously pushing consumption higher and reshaping the structure of global energy demand.Additionally, solar power is set to become the largest contributor to global energy supply growth for the first time in 2025, as clean energy accelerates its replacement of traditional sources and underpins the rise in power demand. Looking ahead, as electrification advances and the digital economy expands, global electricity demand is poised to maintain strong momentum.The IEA forecasts that from 2026 to 2030, global power demand will grow at an average annual rate of 3.6% — well above the levels seen over the past decade. Electricity’s share of final energy consumption will continue to rise, cementing its role as a core driver of the energy transition.