Global Energy Consumption: Present & Future

Introduction

The world’s appetite for energy is growing rapidly, and it is only set to accelerate as we approach 2030 and 2040. This surge is driven by economic growth, rising populations, and the rapid expansion of digital infrastructure, such as data centres, which require vast amounts of electricity to power servers, cooling systems, and connectivity.

Projected Energy Demand for 2030 and 2040

By 2030, global energy demand is expected to continue its upward trajectory, with electricity consumption rising at a feverish pace.

Data centres alone could account for up to 5% of global electricity use by 2030, thanks to the boom in cloud computing, artificial intelligence, and the digital economy.

Looking further ahead to 2040, total global energy demand could increase by about 25%, with most of this growth coming from emerging economies such as India, China, and Southeast Asia.

India, for example, saw a 5.8% jump in energy consumption in 2023, and coal still dominates its energy mix at 57%. Despite a strong push for renewables, renewable generation rose by 13%—fossil fuels remain the backbone of the country’s energy supply.

Globally, fossil fuels made up 81.5% of primary energy consumption in 2023, highlighting the challenge of shifting to cleaner sources.

The Changing Global Energy Mix

The global energy mix is evolving, but the pace is uneven.

Renewables are expanding rapidly—solar and wind power are expected to triple their share by 2040. By 2030, renewables could contribute 80% of new power generation capacity, with solar alone leading the way.

However, even record growth in renewables has not been enough to offset rising demand for oil and coal, especially in fast-growing regions.

Natural gas remains a key player, especially as a flexible backup for renewables, while nuclear energy is also seeing a modest resurgence. Nuclear generation rose by 2.8% in 2023, with China leading the increase.

The Role of Data Centres

Data centres are emerging as a major force in electricity demand.

As more of our lives move online, and as artificial intelligence and cloud services expand, these facilities are consuming more and more power.

By 2030, data centres could use between 770 and 1,560 terawatt-hours (TWh) of electricity—enough to rival the total consumption of some large countries. This trend is pushing utilities and governments to rethink how they generate and deliver electricity.

Small Modular Reactors (SMRs): A New Solution

To meet rising demand and reduce emissions, many countries are exploring Small Modular Reactors (SMRs) as part of their future energy mix. SMRs are a new generation of nuclear reactors that are smaller, safer, and quicker to build than traditional nuclear plants. They can be deployed near cities or industrial hubs, making them ideal for supporting data centres and other high-demand users.

SMRs offer several advantages:

Reliable, round-the-clock power with zero direct emissions
Flexible deployment—they can be added in stages as demand grows
Enhanced safety features due to their compact design

As the world races to balance energy security, affordability, and sustainability, SMRs are likely to play a growing role alongside renewables and other low-carbon technologies.

Summary

The world’s energy demand is set to keep rising through 2030 and 2040, driven by economic growth and the digital revolution. While renewables are expanding fast, fossil fuels still dominate. New technologies like SMRs could help bridge the gap, providing clean, reliable power for the data-driven future.

Introduction

Projected Energy Demand for 2030 and 2040

The Changing Global Energy Mix

The Role of Data Centres

Small Modular Reactors (SMRs): A New Solution

Summary

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