Global energy investment to hit record $3.3 trillion in 2025 amid clean power surge
Global energy investment to hit record $3.3 trillion in 2025 amid clean power surge
Global investment in energy is projected to reach a historic high of $3.3 trillion in 2025, fueled by strong momentum in clean energy spending despite ongoing economic uncertainties and geopolitical instability, according to the International Energy Agency (IEA).
In its latest analysis, the IEA reported that low-emission technologies — including renewables, nuclear, and storage — are expected to attract $2.2 trillion, while fossil fuels such as oil, natural gas, and coal will account for $1.1 trillion. The growing focus on energy security is prompting countries and companies to boost spending across the sector.
IEA Executive Director Fatih Birol noted that while some investors are adopting a cautious approach due to shifting economic conditions, most ongoing projects remain unaffected.
Electricity is taking center stage in the global energy transformation, driven by rising demand across sectors such as electric mobility, AI, data centers, and cooling. Electricity investments are set to reach $1.5 trillion in 2025, nearly 50% higher than fossil fuel spending.
Data centers alone have increased their electricity consumption by 12% annually since 2019, now accounting for 1.5% of global electricity use.
Investment in solar energy is expected to hit $450 billion, making it the largest single item in the energy portfolio. Battery storage is also gaining traction, surpassing $65 billion in 2025. Capital flows to nuclear energy have risen 50% over five years, projected to reach $75 billion.
Despite the positive trends, the IEA highlighted regional disparities. Africa, for example, receives only 2% of global clean energy investment, despite housing 20% of the world’s population.
The agency stressed the need for increased international financing and stronger domestic capital markets to bridge the investment gap. China remains the largest global energy investor, with India and Brazil showing significant progress among emerging economies.
