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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.