IEA Projects AI Electricity Demand to Triple by 2035

The International Energy Agency projects that electricity demand from artificial intelligence data centers will more than double between 2024 and 2030, rising from 415 terawatt-hours to 945 terawatt-hours. The agency estimates this demand will continue to climb to 1,200 terawatt-hours by 2035, nearly tripling the 2024 level. To illustrate the scale of this growth, the agency noted that AI power demand in 2030 is expected to exceed the current total power consumption of Japan.

This surge follows a trend of data center electricity use growing at 12% annually since 2017. The projected increase creates significant opportunities for energy providers across multiple sectors. Nuclear operator Constellation Energy currently provides electricity to AI firms including Meta and Microsoft, while uranium producer Cameco expects nuclear fuel demand to exceed supply by the mid-2030s.

Other companies positioned for this growth include hydrogen fuel cell provider Bloom Energy and regulated utility NextEra Energy. NextEra Energy is currently pursuing an acquisition of Dominion Energy to expand its footprint in major data center markets where Dominion Energy holds a monopoly.