Balancing Growth: Cutting Energy Demand in a Power-Hungry World

When talking about the energy transition, most conversations tend to focus on increasing energy production through renewable sources and adopting so-called “transition fuels” such as natural gas, which generate fewer carbon emissions than coal or oil. These are seen as key to meeting rapidly rising global demand. However, boosting production is only one side of the equation, countries, companies and individuals must also explore ways to curb the rapidly rising demand, agree experts.

The world’s energy consumption in 2024 reached 29,038TWh, and according to the IEA, electricity demand is set to grow by an additional 3,500TWh over the next three years, roughly the equivalent of adding one Japan’s worth of energy demand each year. In Mexico, energy demand rose by 2.7% to around 365TWh in 2024 and is expected to grow at an annual rate of 3% through 2027.

Understandably, expanding electricity generation and transmission infrastructure has become a top priority. With energy demand projected to increase by 4% annually through 2026, according to IEA estimates, ramping up generation is essential to prevent disruptions to grids worldwide. Curbing demand is essential to achieve a healthy balance, however.

Data centers are among the fastest-growing energy consumers globally. In 2024, data centers consumed 415TWh, accounting for nearly 1.5% of the world’s electricity, roughly equivalent to the entire energy demand of Saudi Arabia and 14% more than Mexico’s total consumption. With the accelerating need for crypto mining, artificial intelligence and increasingly fast cloud storage, data center demand is expected to more than double, reaching 945TWh by 2030.

“These facilities consume large amounts of electricity, which can put pressure on existing electrical grids, especially in areas with underdeveloped infrastructure,” said Ricardo Alario, Latin America CEO, ODATA. “However, the use of intelligent technologies to manage energy and cooling systems within data centers can significantly improve sustainability. AI-based energy optimization systems can monitor and adjust performance in real time, improving operational efficiency and extending the life cycle of the infrastructure. In this way, AI can help solve the very challenges that its deployment creates.”

Beyond automation, there have been recent developments aimed at reducing the massive energy demand of data centers in the first place. A team of engineers at the University of California San Diego has developed a new cooling technology that could significantly improve data center efficiency. Their research, published in Joule, introduces a low-cost, specially engineered fiber membrane that passively removes heat through evaporation.

The membrane features a network of tiny, interconnected pores that use capillary action to draw cooling liquid across the surface. As the liquid evaporates, it effectively pulls heat away from the electronics without requiring additional energy input. When tested under varying heat conditions, the membrane delivered record-breaking performance. It handled heat fluxes exceeding 800W/cm2, one of the highest results ever recorded for this type of cooling system, while maintaining stability over several hours of continuous operation.

According to Renkun Chen, Professor in the Department of Mechanical and Aerospace Engineering, UC San Diego Jacobs School of Engineering and one of the paper’s lead authors, the membrane was originally developed for filtration. The team later realized its strong potential for heat management through evaporation. Although Chen notes that the system is still operating below its theoretical performance ceiling, he emphasizes its promising applications not just for data centers, but for a wide range of cooling challenges in the future.

However, curbing energy demand is not limited to large, power-hungry projects. Across the entire electricity consumption chain, from industrial operations and public infrastructure to individual households, advancements in energy efficiency have already made a meaningful impact. Technologies like LED lighting, smart grids, efficient appliances and optimized machinery are helping reduce demand at every level.

According to Sergio Villalón, Senior Vice President and General Manager Mexico and Central America, Signify, energy-efficient lighting, appliances, and industrial equipment offer practical, cost-effective pathways for manufacturers, businesses, governments, and individuals to meet energy-saving goals while reducing environmental impact.

“Of course, governments need to keep investing in new energy generation, because otherwise, we will face blackouts in the future, which  is not desirable for any country that has ambitions to keep growing,” said Villalón. “But there is also another way, which is to consume less. Both have to be done simultaneously. On one hand, we need to carry out large-scale infrastructure programs for energy generation, but at the same time, because these projects take four to six years to execute and are costly and time-consuming, the simplest, fastest way to save energy is to not waste it.”