Asia Is Building the World's Next $15 Trillion Energy Market

OilPrice.com · Alex Kimani · 2026-10-25 23:00 UTC

Asia will drive 70% of global energy demand growth through 2040, requiring $1 trillion in annual investment as industrial expansion and data centers boost consumption.

The global energy transition is increasingly becoming an Asian story, and Asia is unlikely to follow the path envisioned in Washington or Brussels. The region’s governments will have enormous influence over the future of coal, oil, natural gas, renewables and energy storage. What happens next in Asia will determine whether the transition actually reduces global fossil fuel consumption or simply adds vast amounts of renewable power to an energy system that keeps getting bigger.

Asia requires $1 trillion annually in energy investments over the next 15 years to strengthen energy security, accelerate the transition to sustainable energy sources and meet growing regional demand, McKinsey has reported. According to the global management consulting firm, Asia will account for about 70% of global net energy demand growth through 2040, with the continent’s energy demand now expected to reach 370 million terajoules, good for a 15% increase from the forecast a year ago thanks to the proliferation of data centers, industrial expansion and cooling needs.

Coal is expected to remain the most dominant fuel in Asia’s energy mix longer than previously anticipated.

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