IMF: energy to stay costlier amid war and AI demand
According to IMF Managing Director Kristalina Georgieva, an energy supply shock and rapidly growing demand for electricity are reinforcing each other.
The global economy will face persistently high energy prices for the time being. Alongside conflicts and limited supply, IMF Managing Director Kristalina Georgieva points to rapidly rising electricity demand from datacentres and AI systems.
Georgieva said on Wednesday that the global economy was being pulled between two shocks. On the supply side, conflicts in the Middle East and disruptions in the energy market are limiting the availability of oil and gas. On the demand side, investment in artificial intelligence is creating additional demand for electricity and infrastructure.
The IMF managing director made her remarks in a speech ahead of the annual meetings of the IMF and World Bank in Bangkok. According to earlier official briefings, the fund expects global growth to remain around 3 per cent in 2026, but stresses that this average conceals major differences between countries.
Countries that import energy and have little financial room for manoeuvre are particularly vulnerable. They are paying more for fuel and electricity, while higher interest rates and rising government debt limit their ability to compensate households and businesses over the long term.
According to the IMF, the AI boom is acting as a positive demand shock in the short term: companies are investing in datacentres, chips, networks and power supplies. This can support growth, but also drive up inflation if electricity generation, grid capacity and building materials do not expand quickly enough.
This does not mean that AI is itself causing the current energy crisis. The IMF describes AI as an additional source of demand on top of geopolitical disruptions and existing shortages. How large the eventual effect will be depends on how quickly new power generation, storage and connections between electricity grids become available.
Georgieva is calling on policymakers to safeguard price stability, draw up credible budget plans and accelerate energy investment. For European businesses, this could mean that competition for affordable electricity becomes more important, particularly in sectors facing both higher energy costs and the growth of datacentres.
One story, several perspectives
What is established
- The IMF sees both an energy supply shock and additional energy demand from AI investment.
- Countries that import energy are more vulnerable to higher prices.
- The IMF is calling for more energy infrastructure and budgetary discipline.
Left
Arguments The costs of an energy and AI boom must not fall on households and workers. Governments should put public energy infrastructure, affordability and protection against loss of income first.
Values Affordability, the distribution of wealth and public control.
Consequences More subsidies and public investment could limit social harm, but would temporarily increase government spending.
Centre
Arguments The solution lies in a combination of price stability, targeted support and faster construction of grid capacity, storage and clean energy. Both market incentives and public planning are needed.
Values Economic stability, feasibility and the long term.
Consequences A mixed approach could cushion the shocks, but requires difficult choices over who pays and where infrastructure is built.
Right
Arguments The government should primarily remove obstacles to energy production and businesses. A broad subsidy response distorts the market and makes countries more vulnerable to debt.
Values Market forces, budgetary discipline and competitiveness.
Consequences Faster permits and fewer regulations could increase supply, but without targeted support vulnerable households face greater risks.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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Georgieva’s remarks and the IMF’s analysis of AI-related energy demand have been confirmed by Reuters and the IMF itself. The article distinguishes between additional demand pressure and the broader geopolitical energy crisis.
- confirmed IMF Managing Director Georgieva warned about high energy prices and AI risks. — Confirmed by Reuters. source
- confirmed AI investment is increasing demand for electricity and infrastructure. — The IMF describes AI-driven demand for energy and datacentres. source
- confirmed The IMF had earlier expected global growth of around 3 per cent in 2026. — Mentioned in the IMF statement of September 2026. source
Editor's note
The IMF links high energy prices to multiple factors. AI’s contribution is additional demand pressure, not an independent explanation for energy prices as a whole.Sources
- IMF chief warns energy shock, growing debt and AI risks threaten global growth — Reuters via MarketScreener
- Europe and the Global AI Race — Internationaal Monetair Fonds
- IMF Managing Director’s statement at the G20 — Internationaal Monetair Fonds
More on this in Dutch media
- Het Parool — „imf energieprijzen”
- de Volkskrant — „imf energieprijzen”
- NU.nl — „imf energieprijzen”