New research from EY’s has found that a surge in business demand is reshaping the global energy landscape, with providers forced to rethink how they support growth and deliver value. The new report: ‘How can soaring energy demand drive lasting prosperity’ found that business customers are concerned about rising electricity prices, as well as access to energy solutions that align with their organisation’s goals.
EY surveyed more than 2,400 decision-makers at large to mid-sized organisations across eight global markets to assess business attitudes towards the energy sector. It highlighted the pressing challenges faced by both providers and their customers alike, given that electricity demand is expected to double by 2050, with businesses set to drive three-quarters of this growth.
The survey revealed that eight in ten companies expect their energy consumption to increase over the course of the next three years, but two-thirds (66%) are concerned about accessing the reliable energy needed to grow, and 64% say that rising and unstable energy costs are impacting profitability and competitiveness.
The report singled out the projected growth in Artificial Intelligence (AI) as a key driver of energy demand. The IEA recently reported that growth in the use of Artificial Intelligence will lead to the global electricity demand from data centres more than doubling in the next 5 years, reaching 945 terawatt-hours (TWh) in 2030[i]. Notably this figure is equivalent to Japan’s current annual electricity usage and represents an almost 128% increase from the 415 TWh of power used by data centres in 2024. "AI will be the most significant driver of this increase, with electricity demand from AI-optimised data centres projected to more than quadruple by 2030,"[ii] the IEA claimed.
However, AI is not the sole driver of growth in energy demand. EY also identified the addition of new equipment, uptake of electric vehicles (EVs), investment in internal technologies (such as owned data centres), the reshoring of manufacturing, and policy mandates as additional factors contributing to demand growth.
To combat the rising threat, 71% of businesses say they have defined energy strategies, and most are actively looking to build, buy, or partner to strengthen energy capabilities. Around 20% have already invested in on-site power generation and battery storage, and two-thirds plan to expand these efforts within the next three years. However, just under half (42%) say they want their energy providers to act as energy advocates — not just suppliers. Only a third are currently open to providers taking on more advanced roles such as platform orchestrators or solution providers, pointing to a critical gap in perception and positioning. There is also growing interest in demand response programmes, which allow users to reduce usage during peak times, with participation expected to quadruple. In a notable shift, 41% of businesses said they plan to sell excess electricity back to the grid.
Greg Guthridge, EY Global Industrials & Energy Customer Experience Transformation Leader, said: "This isn't just about keeping the lights on. Successfully navigating accelerating business energy growth will drive energy prosperity and fuel the intelligent economies of the future."[iii]
Guthridge added: "The stakes are high. But so is the opportunity. Providers that act now - by engaging with business customers in new ways and rethinking their role in the energy ecosystem - will not only unlock new growth, but help shape a more resilient, sustainable, and prosperous energy future."[iv]
Crucially, EY’s research revealed that whilst reliability and affordability are top priorities (in terms of the energy-related needs of companies), businesses won’t sacrifice green for growth. Sustainability is a high priority for businesses, ranking a close third in terms of priorities, and nearly all businesses surveyed (99%) said that they have set energy goals that centre on increasing the use of carbon-free energy and reducing overall emissions. The study found that the desire to take control of their energy future is driving more investment and a push for self-sufficiency and control. Two-thirds of businesses say they’ll invest or expand on-site power generation and battery storage in the next three years.
The push for renewables ties in with a recent study conducted by We Mean Business Coalition, E3G and Beyond Fossil Fuels, which found that a whopping 97% of executives say they support a clean energy transition. The research revealed that renewables are acting as a driver for investment - more than half of business leaders say they will relocate their operations (52%) and supply chains (49%) to markets with better access to renewables-based power systems within five years[v]. In addition, business leaders are taking matters into their own hands, with the vast majority (93%) considering investment in on-site renewables to aid their operations in the coming years. Executives say that they associate renewables with stronger energy security (75%), lower electricity bills (50%) and higher profits (42%), and over three-quarters (77%) of those polled positively associate renewables with economic growth[vi].
[i] Data centre energy requirements to double in the next 5 years, as AI demands soar
[ii] Executive summary – Energy and AI – Analysis - IEA
[iv] Ibid
[v] Ibid
[vi] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
