​​​​​​​Electricity Is Becoming the World's Next Strategic Advantage

Northern Trust's Weekly Economic Commentary argues that access to reliable, affordable electricity is becoming a defining source of economic competitiveness as AI, electrification and industrial policy accelerate global power demand.

• Global electricity demand is projected to rise sharply over the coming decade, driven by AI data centres, electrification, advanced manufacturing and rising living standards in emerging markets.

• China has built a significant competitive advantage through large-scale investment in generation capacity, transmission infrastructure and low-cost electricity, while Europe faces growing constraints from higher energy costs and limited capacity.

• The report also warns that Europe has implemented only a fraction of the recommendations from the Draghi Report, leaving competitiveness, innovation and energy security increasingly exposed.

Read the full commentary for a deeper look at electricity, industrial competitiveness and Europe's long-term economic challenges.