According to the International Energy Agency’s (IEA) 2025 commentary “Staying cool without overheating the energy system,” global energy demand for space cooling has been increasing at about 4% annually since 2000 — double the growth rate of heating. By 2035, the IEA projects cooling could consume an additional 1,200 terawatt-hours of electricity — outpacing even the demand growth from data centers.
For corporate leaders, policymakers, and urban planners, this is a wake-up call: cooling is not a peripheral energy topic; it is central to future energy resilience and climate adaptation strategies.
Grid Strain & Reliability Threats
In some regions, peak cooling already accounts for over 70% of residential electricity use during summer, per the IEA’s Future of Cooling report. As adoption spreads, especially in emerging markets, the risk of blackouts and brownouts during heatwaves will grow.
Carbon Lock-In
Without efficiency improvements, billions of new air conditioners will lock in decades of higher emissions — a challenge underscored in the IEA’s Energy Efficiency 2024 report.
Inequitable Access
Data from the IEA shows that in East Asia and the Pacific, only one in four low-income households owns an air conditioner, compared with three in four wealthier household. In much of sub-Saharan Africa, access is near zero, with severe health consequences during extreme heat events.
If addressed proactively, the cooling challenge can catalyze innovation, unlock new markets, and strengthen energy security. The IEA’s analysis points to a multipronged approach:
Raise Efficiency Standards Globally
Implementing minimum performance standards for cooling equipment could cut future electricity demand growth for cooling by more than 45%.
Accelerate Passive & Nature-Based Cooling
Building design interventions such as shading, reflective surfaces, and ventilation can reduce cooling loads before mechanical systems are engaged .
Adopt Dual-Purpose Technologies
Heat pumps capable of both heating and cooling — supported by the UK’s extended $10,200 grant program — are gaining traction..
Deploy Smart Controls
Occupant-centric building controls, shown in research to reduce energy waste while improving comfort, offer a step-change in building efficiency .
Expand Equitable Access
Public-private partnerships are essential to ensure that efficient cooling reaches underserved markets, preventing climate adaptation from becoming a privilege of wealth.
Cooling is not just an operational consideration within energy management — it is a core ESG challenge that intersects with corporate climate commitments, supply chain resilience, urban design, public health, and global equity.
Companies with large facility footprints — from manufacturing to retail to data centers — will be directly affected by rising cooling demand and its energy cost implications. Integrating cooling into decarbonization and adaptation strategies today will reduce operational risks and position organizations as leaders in the race to net zero.
The takeaway from the IEA’s analysis is clear: cooling is about survival, competitiveness, and climate stability. The question for leaders is no longer if they should act, but how quickly they can mobilize scalable, efficient, and equitable solutions.
