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Investing.com -- Global power demand is set to increase by about 30% over the next decade, driven by electric vehicles, data centers, and building heating and cooling needs, according to a new report from Rystad Energy.
Traditional industrial sectors like iron and steel, which helped double electricity consumption over the past two decades, will remain the primary growth drivers. While data centers are emerging as a notable source of demand growth, they will account for just 3.5% of total power consumption by 2035.
Renewable energy sources, particularly solar, will be crucial in meeting this rising demand. Renewables are projected to provide 55% of total electricity by 2035, up significantly from 34% in 2024. The remainder will come from nuclear and fossil fuel sources.
"The balance of global electricity is shifting at historic speed," Rystad stated in its report. "Renewables are expected to cross the halfway mark in installed capacity by the end of 2025, a milestone once thought to be decades away."
Power consumption remains heavily concentrated, with the United States and China together accounting for almost half of global electricity use. China is expected to see the largest absolute growth as electrification expands, representing about one-fifth of the total increase. India will experience the fastest relative growth, with its consumption more than doubling during this period.
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