China and India are expected to drive 60% of the increase in global electricity consumption over 2025 and 2026, according to IEA. In the United States, the rapid expansion of data centers is expected to keep annual electricity demand growth above 2% in both 2025 and 2026, more than double the average growth rate over the past decade.

Natural gas-fired generation will continue to displace coal and oil in many regions, although renewables are expected to overtake coal as the world’s largest source of electricity as early as this year, according to IEA. Nuclear power output is expected to reach record highs driven by output in Japan, the United States and France.

“The strong expansion of renewables and nuclear is steadily reshaping electricity markets in many regions,” said Keisuke Sadamori, IEA director of Energy Markets and Security. “But this must be matched by greater investment in grids, storage and other sources of flexibility to ensure power systems can meet the growing demand securely and affordably.”