Electricity Demand Is Surging—The Grid Isn’t Ready

Core Insights - Global electricity demand is rising at the fastest pace in 15 years, expected to grow by more than 3.5% annually through the end of the decade, driven by AI infrastructure, advanced manufacturing, and electrification [1][3] Group 1: Power Demand Growth - Global electricity demand increased by 3% annually in 2025, following a growth of 4.4% in 2024, with an average growth rate of 3.6% projected from 2026 to 2030 [3] - Emerging economies, including China, India, and Southeast Asia, will account for 80% of additional power demand by 2030, while advanced economies are also seeing a return to growth after 15 years of stagnation [4] - U.S. electricity demand rose by 2.1% in 2025 and is expected to grow nearly 2% annually through 2030, with data centers driving half of this increase [5] Group 2: Power Generation Sources - Renewables, nuclear, and natural gas are the primary beneficiaries of the electricity demand boom, but their growth is contingent on effective grid connectivity [2] - The need for rapid and efficient expansion of grids is a pressing global issue, as developers face constraints in connecting new capacity to the grid [6] Group 3: Grid Investment Needs - Current global investments in grids are approximately $400 billion per year, which must increase by about 50% to meet the expected growth in power demand through 2030 [7] - The transition to the Age of Electricity will require significant scaling up of grid-related supply chains [7]