2025 Marks a Turning Point for the World’s Power System
- All net global electricity growth in 2025 is expected to come from renewables and nuclear, marking a structural shift in power markets.
- Rapid expansion of AI-driven data centers is emerging as a major long-term driver of electricity demand.
- Oil and gas demand remains resilient but increasingly fragmented, requiring more selective investment strategies.
The global energy system is entering a pivotal new phase. Rystad Energy’s latest scenario analysis shows that all net growth in global electricity supply in 2025 – around 1,070 terawatt-hours – will come from low-carbon sources, including renewables and nuclear power. This marks a structural shift: renewables are no longer competing at the margins but are now driving all incremental power generation. For investors, this signals that clean-power growth is moving from policy-driven to market-driven, reshaping long-term return potential across utilities, infrastructure, and technology.
One of the most significant developments shaping power demand today is the rapid growth of data centers, particularly those supporting artificial intelligence (AI), cloud computing, and large-scale computing workloads. According to Rystad Energy’s recent research, if all announced projects move forward, data center capacity will reach 145 gigawatts by 2030. This surge reflects not only the proliferation of new data-center capacity but also rising power intensity per facility as AI-optimized hardware and high-density server racks become more common.
At the same time, the outlook for oil and gas remains resilient but nuanced. Rystad Energy expects peak oil demand to arrive in the early 2030s, with different petroleum products following divergent paths: declines in fuel oil, but ongoing growth in jet fuel, liquefied petroleum gas (LPG) and naphtha. This reinforces that traditional energy still plays a meaningful role in the decade ahead, yet investors must be selective, targeting segments tied to structural demand rather than legacy products facing secular decline. This video from Rystad Energy’s annual summit features our CEO, Jarand Rystad, discussing these topics in more detail.
As we close out the year, we appreciate your continued engagement with Rystad Energy. This has been a defining period for both the global energy system and our company, and our mission remains clear: to provide independent, data-driven insights that enable smarter decisions amid rapidly evolving markets, technologies, and policies. In this environment, the value of rigorous, unbiased analysis has never been greater. As geopolitics, supply chains, and transition pathways continue to shift, transparent scenario-based intelligence is becoming a true competitive advantage. For investors navigating the dual reality of accelerating low-carbon growth and continued fossil fuel resilience, high-quality data is not just helpful; it is essential.
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