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IEA: Data Center Electricity Demand Surged 17% in 2025, Will Double by 2030
NATIONAL
Data Centers / Energy & Grid
April 16, 2026
Source: States News Service (IEA)
The International Energy Agency's “Key Questions on Energy and AI” report finds data center electricity consumption rose 17% in 2025 — far outpacing global electricity demand growth of 3%. Capital expenditure by five major tech companies exceeded $400 billion in 2025 and is projected to grow another 75% in 2026.
The pipeline of conditional agreements between data center operators and small modular reactor (SMR) nuclear projects has grown from 25 gigawatts to 45 gigawatts in roughly a year. Tech companies signed 40% of all corporate renewable power purchase agreements in 2025. The IEA's central finding: demand growth does not necessarily raise electricity prices — but only if the right policies and infrastructure investments are in place. Without deliberate policy design, the cost of serving data centers can be socialized across all ratepayers.
Community Takeaway
The IEA report puts a global frame on what communities are experiencing locally. The 17% annual growth rate means data center electricity demand is roughly doubling every four years — far faster than any grid planning process was designed to handle. The policy question is not whether data centers will consume more electricity but who pays for the infrastructure to deliver it. Communities should ask specifically how new generation and transmission costs will be allocated — and whether large-load tariffs ([see Colorado and Wyoming stories from April 14 →]) or similar structures will protect residential and small business customers.
Source: States News Service (IEA), April 16, 2026.