As Clean Energy Demand Soars, Businesses Face Growing Struggle to Source Sustainable Supply

As demand for electricity skyrockets, driven by the rise of generative AI, electrification of processes, and a surge in reshored manufacturing, global businesses may soon prioritize growth over their clean energy commitments. That’s the conclusion of EY’s Navigating the Energy Transition research programme, which surveyed over 2,400 decision-makers at large to mid-sized firms across eight global markets this year.

A staggering 80% of surveyed companies expect their electricity consumption to increase by 80% in the next three years. More than half of them project a double-digit increase.

EY’s modelling forecasts that global electricity demand will double by 2050. The commercial and industrial sectors are set to account for a substantial three-quarters of this growth.

So, what’s driving this surge in electricity consumption? The research identifies several factors at play. Data centres, powering the boom in generative AI, are perhaps the most obvious culprits. But the story doesn’t stop there. Businesses are also ramping up investments in electric vehicles (EVS), on-site data infrastructure, and energy-hungry equipment. At the same time, government mandates and an aggressive push toward reshoring manufacturing are fueling the trend.

Energy is no longer just a utility—it’s a strategic priority. Nearly two-thirds of respondents expressed concerns about securing reliable electricity to fuel their growth ambitions. Just behind them, almost as many are grappling with the impact of volatile and rising energy costs, which they see as a direct threat to their bottom line.

Despite efforts to digitize and electrify their operations, businesses feel increasingly frustrated with their energy providers. The survey reveals that outdated systems, rigid contracts, and a lack of tailored solutions are hindering progress. Many companies are also exploring alternative solutions, such as generating and storing their power.

The shift toward self-sufficiency is already happening. Approximately 20% of businesses have invested in on-site power generation and battery storage. Two-thirds are planning to expand these efforts within the next three years. Demand response programs, which help businesses reduce electricity use during peak hours, are also gaining traction, with participation expected to grow by 400%. A notable shift in thinking is evident, as 41% of businesses plan to sell any excess electricity back to the grid.

Despite increasing pressure to meet emissions reduction targets, the research underscores a fundamental shift. Sustainability is no longer the top priority for most businesses. Instead, reliability and affordability are top priorities when evaluating energy needs. While sustainability remains a key concern, it takes a backseat to the pressing need for reliable and affordable energy.

Interestingly, the research shows that tech companies and manufacturers are more likely to prioritize sustainability. Still, they are caught between clean energy goals and business growth. More than 70% of businesses said they plan to sharpen their focus on emissions reduction, electrification, and cost management over the next three years. But there’s an important caveat: decarbonisation cannot come at the cost of growth. Companies increasingly expect to balance both priorities and are willing to switch energy providers or invest in building their infrastructure to achieve this.

The report paints a concerning picture for energy providers. There’s a widening gap between what businesses expect and what energy providers are currently delivering. Enterprises are seeking more customized solutions, seamless digital integration, and strategic support; yet, only one in three views their energy provider as capable of meeting these evolving demands.

As companies double down on self-sufficiency, the survey reveals that 86% have already invested in energy-related products or services, including energy-efficient equipment and electric vehicle (EV) infrastructure. And many are not stopping there. The next wave of investment will encompass a broad spectrum of technologies, ranging from microgrids and on-site renewables to district energy systems and emissions monitoring tools.

EY global industrials & energy customer experience transformation leader Greg Guthridge said: “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.”