The International Energy Agency (IEA) latest report indicates that data centers are becoming a key force reshaping energy patterns in the United States and globally.
The IEA's annual &#34;Global Energy Review&#34; report released on Monday stated that U.S. power demand grew by 2% in 2025, with data center electricity consumption alone accounting for approximately half of the total increase in U.S. power consumption. Meanwhile, global power demand grew by 3%, far exceeding the 1.3% growth rate of overall energy demand. Fatih Birol, Executive Director of the IEA, characterized this trend as a clear signal of &#34;expansion of economic electrification.&#34;
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On the supply side, solar power became the largest single source of global energy additions for the first time, contributing over 25% of the addition share, surpassing natural gas at 17%. Battery storage emerged as the fastest-growing power technology in 2025, with new installed capacity reaching approximately 110 gigawatts, exceeding the highest annual new installation record for natural gas ever.
<h2>Data Centers Drive Structural Changes in U.S. Power Demand</h2>
According to the IEA report, U.S. power demand grew by 2% in 2025, lower than the 2.8% in 2024, but still more than triple the average growth rate of the past decade.
From the perspective of demand structure, the building sector contributed 80% of the increase in U.S. power demand, with rapidly rising data center load being the core driver. Data center electricity consumption alone accounted for approximately half of the total increase in U.S. power consumption. The IEA also noted that colder-than-average weather in winter 2025—Heating Degree Days increased by nearly 10% year-on-year—provided additional support for power demand.
The IEA characterized the U.S. energy demand growth in 2025 as the second-highest level since 2000 (excluding rebound years after economic recessions), driven by strong data center electricity demand, robust industrial growth, and cold weather.
<h2>Global Power Demand Growth Continues to Outpace Overall Energy Demand</h2>
In 2025, global power demand grew by 3%, higher than the 2.8% annual average between 2014 and 2024, but lower than the 4.4% in 2024. The IEA attributed the slowdown in growth primarily to one-off factors such as reduced cooling demand in India and Southeast Asia, rather than a reversal of structural trends.
In contrast, global overall energy demand growth was only 1.3%, slightly below the 1.4% average of the past decade, dragged down by factors including slowing global economic growth, weakening growth in energy-intensive industries, and accelerated improvements in energy efficiency.
Fatih Birol stated in the report: &#34;Power consumption growth far exceeds overall energy demand growth—a trend that is unmistakable: economic electrification is continuing to expand.&#34;
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<h2>Solar Power Sets Records; Battery Storage Surpasses Natural Gas</h2>
On the power supply side, global solar photovoltaic generation added 600 terawatt-hours in 2025, representing the largest structural increment recorded for any single power technology in a single year since the post-crisis recovery period (excluding crisis periods), contributing approximately 70% of the global power supply increase.
Combined additions from renewable energy and nuclear power have already exceeded the total increase in global power supply. Total renewable generation is now almost equal to total global coal-fired power generation. In the European Union, the combined share of solar and wind power generation reached 30% in 2025, surpassing fossil fuels for the first time.
Regarding battery storage, new installed capacity reached approximately 110 gigawatts in 2025, a year-on-year increase of about 40%, exceeding the highest annual new installation scale for natural gas ever. Additionally, over 12 gigawatts of new nuclear power capacity started construction globally in 2025, with nuclear projects regaining momentum in multiple regions.
Global annual renewable energy new installed capacity reached a historic high of 800 gigawatts, with solar power contributing 75%.
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<h2>Fossil Fuel Demand Growth Slows Across the Board; Carbon Emission Growth Tapers</h2>
In 2025, global oil demand increased by 650,000 barrels per day, a growth rate of 0.7%, lower than the 750,000 barrels per day in 2024 and far below the average annual increase of 1.4 million barrels per day between 2010 and 2019. The IEA pointed out that the continued adoption of electric vehicles has suppressed oil demand for road transport—electric vehicle sales grew by over 20% in 2025, breaking through 20 million units, accounting for approximately one-quarter of global new car sales.
Natural gas demand growth dropped significantly from 2.8% in 2024 to about 1%, mainly suppressed by relatively high prices in the early part of the year. Coal demand was only slightly higher than 2024 levels, with a growth rate of about 0.4%; China's coal-fired power usage declined due to rapid expansion of renewable energy, while India's coal-fired power demand decreased due to an earlier onset and longer duration of the monsoon season.
Global energy-related carbon dioxide emission growth slowed further, with a 2025 increase of approximately 0.4%. The IEA calculated that large-scale deployment of clean energy technologies since 2019 cumulatively reduced fossil fuel demand by over 35 exajoules in 2025, equivalent to about 7% of global annual fossil fuel consumption, while reducing carbon dioxide emissions by approximately 3 billion tons annually.

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Data centers are becoming the core driver of power demand growth in the United States, contributing nearly half of the national power increase in 2025 and driving power demand to outpace overall energy demand as 'economic electrification' accelerates. On the supply side, solar power became the largest single source of global energy additions for the first time, while battery storage new installations reached a record high and surpassed natural gas, with fossil fuel demand growth slowing across the board

- The IEA's latest report highlights that data centers are becoming a key factor reshaping energy consumption patterns in the U.S. and globally, with their power usage accounting for about half of the increase in U.S. electricity demand by 2025.  
- Global electricity demand is projected to grow by 3% in 2025, surpassing overall energy demand growth of 1.3%, driven by factors including strong data center energy consumption and colder winter temperatures.  
- Renewable energy sources, particularly solar and battery storage, are expected to significantly contribute to global electricity supply, marking a transition towards economic electrification.

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IEA Annual Report: Data Centers Account for Half of Last Year's U.S. Power Demand Increase; Battery Storage Fastest-Growing Global Power Technology