APEC Outlook Projects Near-Doubling of Electricity Demand by 2060, Driven by Data Centers and EVs
December 28, 2025
A new regional energy outlook warns that the rapid expansion of data centers and the mass adoption of electric vehicles (EVs) are set to dramatically reshape electricity demand across the Asia-Pacific, presenting both a critical challenge and an investment opportunity for the coming decades.
According to the ninth edition of the APEC Energy Demand and Supply Outlook, electricity generation across the 21-member Asia-Pacific Economic Cooperation economies could surge to 32,690 terawatt-hours by 2060, a significant increase from 18,971 TWh in 2022. This projected growth of up to 96 percent underscores a fundamental shift from direct fossil fuel consumption to electrification in transport, buildings, and industry. Kazutomo Irie, Chairman and President of the Asia-Pacific Energy Research Centre (APERC) which produced the report, stated that the analysis aims to support member economies "in navigating the evolving energy landscape by identifying key challenges and opportunities in the energy sector."
The report identifies two primary engines for this demand surge. In transport, EVs are projected to constitute about 60 percent of the vehicle fleet by 2060 under current policies, potentially rising to 96 percent if economies achieve their stated climate targets. While this shift will sharply reduce oil consumption, it will place substantial new demands on power grids. Concurrently, in the buildings sector, power consumption continues its upward trajectory, primarily fueled by the rapid proliferation of data centers and associated artificial intelligence workloads, even as efficiency improvements moderate growth in other areas.
To meet this soaring demand while decarbonizing, the energy mix is poised for a profound transformation. The share of renewables in electricity generation is forecast to more than double, reaching 55 percent by 2060 under current policies, up from 26 percent in 2022. If more ambitious targets are met, this share could climb to 64 percent. This expansion will coincide with a steep decline in coal-fired generation, projected to fall by 56 to 74 percent, while natural gas supply is seen rising by 58 percent under current policies, highlighting its role as a transitional fuel.
The scale of the required infrastructure investment is monumental. APERC estimates a cumulative investment need of $57 trillion in the power and hydrogen sectors from 2025 to 2060 under current policies, escalating to $91 trillion if full emissions-reduction targets are pursued. Although reduced fossil fuel use could yield savings of approximately $5.4 trillion, these would be far outweighed by the massive spending required for renewable generation, grid modernization, energy storage, hydrogen infrastructure, and backup capacity.
The outlook emphasizes that the window for effective action is narrowing. As electricity demand outpaces overall energy consumption, economies face urgent pressure to expand grids and deploy low-carbon technologies to manage the transition without exacerbating price volatility or compromising supply security. Eduardo Pedrosa, Secretary General of the APEC Business Advisory Council, underscored the collective nature of the challenge, noting that "No economy can secure reliable, affordable and sustainable energy alone," and that policy decisions in the next decade will disproportionately impact regional investment, prices, and security.
Source: sunstar
