Google, Microsoft electricity demand jumps over 25% for second year in a row

Published 02/07/2025, 12:20
© Reuters

Investing.com -- Electricity consumption at tech giants Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) soared more than 25% in 2024 for the second consecutive year, driven by growing demand for cloud computing and the increasing energy needs of artificial intelligence systems, according to Barclays (LON:BARC).

In a note to clients on Wednesday, Barclays cited Google’s newly released 2025 Sustainability Report, which revealed a 27% year-over-year increase in global electricity usage to roughly 32 terawatt-hours (TWh). 

The surge included a 25% rise in North America and a 32% jump internationally. Microsoft similarly reported a 27% rise in electricity usage for fiscal year 2024, bringing its total to approximately 30 TWh.

Barclays analysts said these gains signal that hyperscalers are on track for their seventh straight year of electricity growth exceeding 25%, “even before surging AI inference demand.” 

They estimate that Google, Microsoft, and Meta (NASDAQ:META) could account for more than 17 TWh of additional global electricity demand in 2024. That translates to roughly 2.3 gigawatts of new data center capacity, assuming 85% utilization.

The report also highlighted Google’s progress and challenges in reaching its goal of 24/7 carbon-free energy by 2030. 

Barclays explained that while the company has matched 100% of annual electricity demand with renewable energy credits since 2017, only 66% of its 2024 power usage was served by carbon-free energy on a 24/7 basis, up modestly from 64% in 2023.

Google acknowledged that barriers to further progress include “constrained transmission grids, higher costs for clean energy, fragmented and insufficiently connected electricity grids, and regulatory and tax considerations,” particularly in Asia Pacific and parts of the U.S., said Barclays.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.