With more than 6,000 data centers already operating around the world, and many more expected to be built, the demand for energy to power them is surging. The revolution in artificial intelligence is also fueling a growing need for electricity, and other factors are contributing to the energy demand, too: growth in advanced manufacturing, uptake in electric vehicles, cryptocurrency “mining,” electrification of emerging economies, and an increase in extreme weather events.

Globally, energy demand is projected to grow 11–18% by 2050, according to McKinsey & Co.’s Global Energy Perspective 2024. Electrification is driving that demand, as electricity consumption worldwide could more than double or even triple during that period, according to McKinsey’s analysis.