According to forecasts by the International Energy Agency, the sectors of industry, data centers, and air conditioning are anticipated to be among the primary drivers of the fastest growth in electricity demand in recent years, as reported. This rapid expansion is expected to significantly impact the global energy landscape.

The agency’s forecast, released on Friday, predicts that the world will require a 4% annual increase in electricity through 2027. To meet this growing demand, it will be necessary to add generating capacity equivalent to that of Japan every year, highlighting the enormity of the task at hand.

Although data centers in the U.S. have been prominent in the news, it is the emerging and developing economies that are expected to drive approximately 85% of the growth in electricity demand. The industries in China, including the manufacturing of solar panels, batteries, and electric vehicles, will be key factors in the country’s annual electricity growth, which is forecasted to be around 6%, slightly lower than the previous year.

In comparison to China, the growth in electricity demand in the U.S. will be lower, yet still substantial. Through 2027, the U.S. is expected to add as much demand as the current demand of California, underscoring the significance of this growth.

The International Energy Agency notes that low-carbon sources, primarily comprising renewables and nuclear energy, are anticipated to fulfill nearly all of the global demand growth. This emphasizes the critical role that these energy sources will play in meeting the world’s increasing electricity needs.