The climate crisis, along with technological and political shifts, is rapidly pushing the global energy sector toward a new paradigm. By 2035, we should see nuclear power capacity grow by at least one-third. Electricity use is increasing again. By 2050, it is expected to account for more than half of the energy used around the world. Countries are leading the way to tackle energy security, deliver on climate goals and meet the growing, desperate need for universal energy access. To achieve these goals, the focus is shifting to electricity—and specifically nuclear energy—as critical components of future energy plans.
As recent as last December, an astonishing 43 countries were adding or actively considering the addition of nuclear energy to their plans for the future. The global energy transition explained This shift is powered by record highs in oil, natural gas, coal consumption, and nuclear generation since 2019. Global investment in data centers is expected to reach $580 billion by 2025. This unexpected increase points to a growing desire to utilize energy more efficiently in our rapidly expanding digital world.
The Rise of Nuclear Power
Nuclear energy is experiencing a renaissance as nations around the world look for cleaner, more reliable sources of energy to power their economies and burgeoning energy demand. According to the International Energy Agency (IEA), capacity in global nuclear power will increase 25 percent by 2040. It is projected to increase by a third by 2035. And this expansion is actually keeping up with the increasing electricity demand, which is expected to grow by about 40% over that same time period.
“In a volatile world, energy security takes centre stage.” – WEO 2025
As countries across the world look for energy security and clean energy alternatives, over 40 countries have started or are planning to advance nuclear projects. The IEA is right to stress that this growing trend highlights the need for a reliable and affordable supply of electricity.
Fatih Birol, the executive director of the IEA, describes this time as a make-or-break moment in energy history. He notes that never in history have energy security tensions hit so many fuels and technologies at once. This complex global challenge requires global leadership and collaboration among governments. They need to address a variety of policy objectives aimed at affordability, global competitiveness, and combating climate change.
Shifting Dynamics in Energy Investment
The global investment picture illustrates the pressing need for innovation to supply cleaner electricity and electrify end uses. Investors are pouring more money into these areas, as half of today’s global energy investment is aimed at electricity-related efforts. This trend represents an important turning point as the world moves toward an electrified future.
Especially as electricity is emerging as the foundation of every advanced, clean economy around the world. Electricity consumption is growing rapidly and expected to make up over half of total energy use by 2050. According to the International Energy Agency (IEA), renewable energy’s installed capacity will jump to nearly 19.6 terawatts (TW) by 2024. This would be an incredible four times increase from the current levels.
“Analysis in the World Energy Outlook has been highlighting for many years the growing role of electricity in economies around the world. Last year, we said the world was moving quickly into the Age of Electricity – and it is clear today that it has already arrived.”
As countries work to build a better electricity setup underneath their feet, they’re contending with thrilling new challenges to vitality security. Our traditional hazards to oil and gas supplies are now infused with exposure in our critical mineral supply chains. China dominates the refining industry for 19 of these 20 energy-related strategic minerals. It has an extraordinary average market concentration of over 70% market share.
“Traditional hazards affecting the security of oil and gas supply are now accompanied by vulnerabilities in other areas, most visibly in critical minerals supply chains.”
Climate Goals and Future Emissions
Despite these advancements, the world is still missing the mark by a long shot on delivering universal energy access and meeting climate change targets. Indeed, energy-related emissions have continued their rise since 2019 under the leadership of activities in China. Projections indicate that global energy-related emissions could decrease by approximately 50% from 2024 levels by 2035 under the Net Zero Emissions by 2050 (NZE) scenario.
In the IEA’s Announced Pledges Scenario, electricity demand is expected to more than double by 2035, making up almost a third of total final consumption. The state’s peak electricity demand is expected to increase by nearly 40 percent during this time. Both our Current Policies Scenario (CPS) and our Stated Policies Scenario (STEPS) foretell this rise.
“It rises by around 40% to 2035 in both the CPS and the STEPS, and by more than 50% in the NZE Scenario.”
To meet the demands of a sustainable future, keeping electricity security will depend on a portfolio of complementary steps. To better safeguard energy security, legislators should consider a variety of factors. To be effective, they must develop ambitious plans that are consistent with international climate targets.