IEA Chief: Electrification Still Energy's Top Bet Despite AI Fears
Kpler Sees Oil Grinding Higher as Diesel Crunch Deepens What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market… Rising electrification rates remain the main pillar of global energy investment despite recent concerns about the existential threat that AI could pose for humanity, Fatih Birol, the Executive Director of the International Energy Agency (IEA), said on Thursday.
“Electricity demand increases three times faster than the total energy demand,” Birol told a news conference in Seoul, as carried byReuters.
The shift toward increased electrification remains firmly anchored by capital markets, the official added.
Electrification is not “a rose garden,” but it is the clear way forward despite concerns that AI investments could slow amid fears of an existential threat the technology could pose, Birol said.
However, higher electrification costs and slower grid expansion than the surge in electricity demand could hamper broader global electrification rates, the IEA’s top executive noted.
Global electricity demand is rising at the fastest pace in 15 years and will continue to do so at least until the end of the decade as AI infrastructure, advanced manufacturing, and electrification have ushered inThe Age of Electricity, the IEA said in an annual report on electricity trends early this year.
Global power demand is expected to grow by more than 3.5% per year on average through the end of the decade, the agency said in its Electricity 2026report.
While emerging economies, including China, India, and the Southeast Asian region, will drive 80% of the additional power demand by 2030, advanced economies see growth in electricity demand after 15 years of stagnation, the IEA said.
Artificial intelligence, data centers, and advanced manufacturing support the return to growth in power demand in advanced economies.
electricity demand rose by 2.1% in 2025 and is expected to grow by nearly 2% annually through 2030.
The rapid expansion of data centers will drive half of the increase, the agency noted.
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| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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