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Global electricity demand is forecast to double by 2050, with businesses expected to account for around 75% of this growth.
This surge is driven by factors such as the expansion of data centres, increased electrification, onshoring of manufacturing and large-scale investments in emerging technologies.
EY’s latest research asks how this growing demand can fuel long-term prosperity and what shape the business energy transition will take.
EY’s Navigating the Energy Transition research programme spans five years and includes insights from nearly 100,000 residential consumers and more than 2,400 energy leaders and decision makers from medium to large businesses.
Electrification ambitions and rising expectations
The study covers eight countries across various stages of energy transition and renewables deployment.
The findings highlight growing ambition.
According to EY, 70% of businesses will prioritise electrification, energy costs and emissions within the next three years.
However, most say that traditional account management is no longer enough.
EY’s data reveals that 71% of businesses now have energy strategies but many are waiting to collaborate with energy specialists to execute them.
Businesses are increasingly willing to pay more for rapid access to renewable energy, particularly through on-site generation and battery storage.
Around 70% of those surveyed plan to invest in both areas within the next three years.
The shift in expectations is also evident in the way businesses view their relationship with energy providers.
Customised services, transition support and digital tools are in high demand, especially as energy consumption becomes more central to operations.
“Successfully navigating accelerating business energy growth will drive energy prosperity and define the economic and energy transition winners of tomorrow,” says Greg Guthridge, EY Global Industrials & Energy Customer Experience Transformation Leader, in EY’s report.
The report also outlines the complexity of today’s business energy needs. For mid-sized firms in particular, the energy landscape is difficult to navigate without targeted support.
Addressing the “neglected middle” of the business energy transition
Mid-sized businesses, which form a large portion of employment and GDP, express similar energy ambitions to their larger counterparts but often lack the confidence and capability to act.
EY’s data shows they are 20% less likely to have clear energy plans in place.
More than two-thirds of these businesses are exploring options including on-site renewables, battery storage, demand response, electrification of equipment and EVs.
However, progress is limited by challenges around financing, regulation and insufficient engagement from energy providers.
“Progress is slow because of barriers including the high cost of financing, complex regulations and challenges working with energy providers,” says EY.
This presents a growth opportunity for providers willing to offer sector-specific services and support.
Tailored partnerships and smarter solutions could enable this underserved group to actively participate in the energy transition.
Data centres and digital tech
Digital infrastructure is emerging as a core force behind demand.
The acceleration of generative AI development, alongside ongoing electrification, is pushing electricity consumption to levels not seen in decades.
EY finds that 71% of businesses want artificial intelligence to support energy decision-making, including advice and insights on deploying smarter systems.
This reflects a broader appetite for digital platforms that provide real-time control, automated reporting and optimisation.
“Data centres are multiplying, electrification is accelerating and manufacturing is ramping up, all driving electricity demand to levels not seen in decades,” says Greg.
“Rising energy demand and infrastructure investments are impacting affordability and raising important questions about who should pay for it.”
Examples of smarter systems in action include AES, a US utility operating in 15 countries.
AES works with Siemens to run Fluence, an industrial-scale battery storage company.
It also invests in Uplight, a cloud-based energy platform for residential and business customers.
A partnership with Google supports 24/7 carbon-free energy supply for Google’s Virginia data centre, while collaboration with solar technology firm 5B accelerates renewable access for business clients.
These integrated models demonstrate how the use of energy platforms, cloud-based solutions and battery storage are evolving into standard commercial tools.
New roles for energy providers
EY’s research suggests that 42% of businesses want their energy suppliers to act as advocates for the energy transition.
The firm outlines four roles that providers can take on to meet new expectations:
Core energy operator: Offering simple tariffs and fit-for-purpose plans
Energy transition advocate: Supporting customers to explore and adopt clean energy
Energy platform orchestrator: Enabling customers to manage, monitor and optimise consumption
Specialised solution provider: Delivering related technologies such as solar, storage or energy-as-a-service.
With businesses now shaping the trajectory of global electricity growth, energy is no longer a background cost, it is a central part of operational strategy.
