IEA Chief: Electrification Still Energy's Top Bet Despite AI Fears

By Michael Kern - Sep 17, 2026, 12:00 PM CDT IEA Executive Director Fatih Birol says electrification remains the top pillar of energy investment despite fears AI poses an existential risk to humanity. Electricity demand is growing three times faster than total energy demand, and the IEA expects that pace to hold through 2030. U.S. electricity demand rose 2.1% in 2025, with data centers set to drive half of the country's growth through the end of the decade. 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 by Reuters.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 in The 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 2026 report.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.U.S. 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.By Michael Kern for Oilprice.comMore Top Reads From Oilprice.comHormuz Shipping Traffic Remains Stuck in Single DigitsGermany Weighs Market Incentives to Boost Record Low Gas Storage LevelCongress Sends Sweeping Russia-Iran Sanctions Bill to Trump Download The Free Oilprice App Today Back to homepage