AC a key driver in higher electricity demand
24th March 2025
FRANCE: Rising demand for air conditioning is seen as a key factor for higher electricity demand in the global buildings sector in 2024.
While growth in global energy demand surged in 2024 to almost twice its recent average as the consumption of electricity rose around the world, electricity demand in the buildings sector grew four times faster than in 2023.
According to the International Energy Agency’s latest Global Energy Review, global electricity consumption in buildings increased by 5%, or over 600TWh, accounting for nearly 60% of total growth in electricity consumption.
A rising demand for air conditioning was seen as a key driver, which was bolstered by severe heatwaves in countries such as China and India, and demand for power from new data centres.
Global energy demand doubles
Growth in global energy demand surged in 2024 to almost twice its recent average as the consumption of electricity rose around the world. Increased supply of renewables and natural gas covered the majority of additional energy needs, according to the IEA report.
The report finds that global energy demand rose by 2.2% last year – lower than GDP growth of 3.2% but considerably faster than the average annual demand increase of 1.3% between 2013 and 2023. Emerging and developing economies accounted for over 80% of the increase in global energy demand in 2024.
The acceleration in global energy demand growth in 2024 was led by the power sector, with global electricity consumption surging by nearly 1,100 terawatt-hours, or 4.3%. This was nearly double the annual average over the past decade.
The sharp increase in the world’s electricity use last year was driven by record global temperatures, which boosted demand for cooling in many countries, as well as by rising consumption from industry, the electrification of transport, and the growth of data centres and artificial intelligence.
The expanding supply of low-emissions sources covered most of the increase in global electricity demand in 2024.
