AI Reshapes Global Electricity Sector

The global electricity industry is heading toward a historic shift, as investments in renewable energy are expected to surpass those in fossil fuel sources in 2026. This comes amid continued growth in solar and wind capacities, as well as battery usage, despite a slowdown compared to the previous year—particularly in the Chinese market. Renewable energy sources are projected to account for over 91% of new capacity additions, with electricity generation from solar and wind increasing. The total electricity production is forecasted to reach approximately 33,054 terawatt-hours in 2026, while coal remains a leading source. Additionally, data centers are emerging as a new electricity consumer; their energy consumption is expected to increase sevenfold to 1,692 terawatt-hours by 2035. This growth is accompanied by massive investments exceeding $770 billion in the artificial intelligence sector, reflecting a significant shift in global energy demand and investment patterns.

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