Electricity used for cooling buildings has risen by about 50% since 2015, reaching roughly 2,900 terawatt-hours, according to the International Energy Agency. The growth is making air conditioning an increasingly important question for power suppliers and businesses.
In a 2026 analysis, the IEA estimates that space cooling accounted for 14% of the growth in global electricity demand since 2015. In the Middle East and North Africa, it accounted for as much as a quarter of the increase.
Cooling can protect health, keep workplaces usable and preserve goods. But as more people and businesses use air conditioners, electricity systems must be able to supply them when hot weather drives many units to operate at once.
Why demand peaks matter
Annual electricity consumption measures how much energy is used over time. Peak demand measures the rate at which electricity is needed at a particular moment. Both matter, but they create different challenges.
An electricity network must have sufficient generation, transmission and local distribution capacity for its busiest periods, not just enough energy over the year. A system with modest annual growth may still face pressure if air conditioners run simultaneously during an extreme heat event.
The IEA estimates that cooling contributed 1,400 gigawatts of peak demand across markets in 2025. That is a measure of demand at peak times across those markets, not a claim that the whole world reached one identical peak at the same instant.
Higher peaks can increase the need for equipment that is used heavily only during a limited number of hours. Utilities and regulators must decide how to recover those costs while keeping service affordable.
Efficient equipment can reduce the load
Air conditioners move heat out of indoor spaces using electricity. More efficient models can provide the same cooling with less power under comparable operating conditions.
The IEA points to equipment efficiency as a way to moderate growth in demand. Standards, clear efficiency labels and access to finance can help buyers compare the lifetime electricity cost with the initial purchase price.
Actual savings depend on the building, local weather, installation, maintenance and how people use the system. A more efficient unit does not guarantee a lower bill if it is used much more often or electricity prices rise.
Businesses can also look at operating schedules, maintenance and building controls. Our coverage of a Greek pilot for smarter commercial-building controls examines how operators can identify waste, although that project did not establish a measured saving.
Buildings and networks both matter
Shading, insulation and ventilation can reduce the amount of heat entering a building. Their effectiveness depends on local conditions and design, and they are not substitutes for air conditioning in every situation.
Grid operators can also plan for stronger local networks, flexible demand and storage. Batteries can move some electricity use to a different time, but their contribution depends on their capacity, cost and the duration of demand peaks.
As previous MBN reporting on grid controls explained, better use of existing infrastructure may create room for new demand, although equipment and operating constraints still matter.
The central issue is not whether people should be kept cool. It is how to make cooling accessible and reliable without building more capacity than necessary or leaving households and businesses exposed when temperatures rise.
