Global clean energy requests are heading toward a period of significant pressure in 2026, driven by surging AI energy demand, expanding datacenter electricity use, accelerating clean energy transition, growing renewable energy investment, and adding grid modernisation needs. A new assessment from S&P Global Energy’s Horizons exploration platoon outlines how artificial intelligence, geopolitical shifts and climate challenges are clustering to reshape the global energy geography. The report emphasises that the rapid-fire scale- up of AI- driven workloads is creating structural stress across power systems, forcing serviceability and controllers to review capacity, adaptability and sustainability strategies.
S&P Global Energy projects global datacenter electricity consumption to rise by 17 percent in 2026, continuing an periodic growth rate of 14 percent through the end of the decade.However, datacenters could consume further than 2, 200 TWh of electricity by 2030 — roughly original to India’s present power use, If current trends persist. This sharp growth, combined with the reality that 38 percent of datacenter- operating companies still do n’t have net- zero commitments, creates a widening dissociate between digital expansion and commercial climate liabilities. Major technology players including Microsoft, Alphabet and Meta are decreasingly exploring cold-blooded procurement models, zero- carbon generation hookups and new technologies to meet rising loads without compromising their decarbonisation circles.
Solar Power Faces a Global retardation
Beyond AI, the report highlights a cooling in global solar installations touched off largely by China’s policy shift down from fixed pricing toward competitive bidding. Global solar additions are anticipated to decline from around 300 GW in 2025 to nearly 200 GW in 2026, marking the first time- on- time drop worldwide. With China having driven roughly half of global solar growth over the once decade, this policy reset is reshaping force chain hypotheticals, investment timelines and country- position renewable targets. Indeed so, accretive solar PV capacity is read to double within five times, supported by cheaper modules, diversified manufacturing bases and rapid-fire uptake in arising requests.
Aging Grids Come a Global Economic Constraint
Grid modernisation emerges as one of the central challenges bolstering global power security, competitiveness and decarbonisation. In Europe, nearly 40 percent of electricity grids are further than four decades old. The European Commission estimates that 584 billion euros will be needed by 2030 to strengthen networks, integrate renewable generation and support electrification. The United States faces a analogous tailback
without significant upgrades, the country may struggle to deliver the power demanded for AI- driven datacenter expansion. S&P Global Energy warns that grid readiness is getting a determinant of public competitiveness, not just an structure concern.
Commercial Power Procurement Adapts to Volatility
The report notes a shift in the commercial energy procurement geography as request volatility and shifting electricity prices push buyers toward flexible power purchase agreements. rather of traditional long- term fixed contracts, companies are turning to mongrel PPAs that integrate multiple technologies, battery storehouse and strike protection. Datacenters remain the largest commercial buyers, counting for 27 GW of the 63 GW in total commercial procurement by October 2025. Europe’s phase of low indicator prices has accelerated this shift toward sophisticated hedging strategies across large- scale buyers.
China Accelerates Green Hydrogen and Clean patch Exports
China’s rapid-fire advance in green hydrogen underscores its growing cleantech leadership. Domestic electrolyzer installations are set to reach 1.5 GW in 2025 and 4.5 GW in 2026, supported by a steep fall in outfit costs — from around 250 bones
per kilowatt in early 2024 to lower than 100 bones
due to surfeit and competitive pressure. Chinese manufacturers are also situating themselves as major clean patch exporters. Two Chinese green ammonia installations have formerly secured EU instrument, with free- on- board prices near 600 bones
per metric ton.
Sustainable Aviation Energy and EV Adoption Expand
Sustainable aeronautics energy capacity is projected to increase by one third to roughly 8 million metric tons in 2026, with Asia leading global product. European airlines, facing stricter regulations and limited domestic force, are anticipated to be major buyers. By 2030, SAF capacity could reach 42 million metric tons encyclopedically, though only a bit of planned systems have reached final investment decision. At the same time, EV relinquishment continues to widen across global requests. China is poised to come the first major country where electric vehicles constitute half of new light- vehicle deals, while arising requests similar as Thailand, Indonesia, Mexico, Pakistan, Nigeria and Malaysia are getting seductive import destinations for Chinese EV brands.
Geopolitical Realignments and Rising adaption Costs
The geography of global climate policy is set for farther complexity with the 2026 rollout of the EU Carbon Border Adjustment Medium and proposed updates to the Greenhouse Gas Protocol. S&P Global Energy warns that inconsistent carbon account rules could complicate transnational trade unless global fabrics meet. Meanwhile, the cost of climate adaption continues to rise. Without stronger threat- operation strategies, the report estimates that large intimately traded companies could face periodic climate- related costs of around 885 billion bones in the 2030s. As extreme rainfall events increase, adaption planning is shifting from voluntary to essential.
The overarching communication from S&P Global Energy is that 2026 will be a defining time. The crossroad of AI- driven electricity demand, geriatric grids, shifting geopolitics and enhancing climate impacts is reshaping the veritably foundations of global energy transition and profitable growth.
