Global Energy Demand Surges Amid Record Heat, Rising AI Use

Global energy demand saw a significant surge in 2024, with a 4.3% increase in electricity consumption, driven by extreme heat, rising use of air conditioning, and the growth of artificial intelligence and data centers. Emerging economies were responsible for over 80% of this increase, while advanced economies also experienced a resurgence in energy demand after years of decline. The International Energy Agency (IEA) reported that renewables and nuclear power together accounted for 40% of global electricity generation, with a record 700GW of new renewable capacity installed last year. Natural gas demand rose by 2.7%, surpassing average growth rates, while coal use increased by 1% primarily due to high temperatures in China and India. The rise of electric vehicles significantly impacted oil demand, which grew only modestly by 0.8%. The interplay between rising temperatures and energy consumption highlights the urgent need for sustainable energy solutions to mitigate climate change.