Asia set to drive $15 trillion energy investment through 2040
The region is expected to account for 70% of global net energy demand growth, reshaping the global energy transition.
At a glance
- Asia expected to account for roughly 70% of global net energy demand growth through 2040
- Regional energy demand forecast at 370 million terajoules, 15% higher than previous year's estimate
- McKinsey analysis shows $1 trillion annual investment needed, totalling $15 trillion through 2040
- Asia consumes nearly half global energy but produces only about one-third, according to Morgan Stanley
Asia is forecast to require approximately $1 trillion annually in fresh energy investment through 2040, totalling around $15 trillion, according to analysis by McKinsey & Co published in October. The investment surge is driven by growing demand from data centres, industrial expansion and cooling needs, with regional energy demand now projected 15% higher than previous forecasts.
The region's energy choices will significantly influence whether the global transition reduces fossil fuel consumption or simply adds renewable capacity to an expanding energy system. Morgan Stanley estimates $5.5 trillion in Asian energy infrastructure spending over five years, noting that much near-term investment is likely directed toward coal, gas and refining as governments prioritise energy reliability and security.
Why it matters
Asia's energy decisions will determine whether the global transition actually reduces fossil fuel use or simply expands renewable capacity alongside continued growth in traditional energy sources.
Original reporting
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
