How to rethink energy demand to build a sustainable, resilient future

Every year, around the world, buildings and industry waste hundreds of billions of dollars on electricity we aren’t using. Research shows that about 30% of electricity is wasted after the meter. That’s energy, emissions and cost our world can’t afford to waste. These are not only avoidable losses – they are a call to rethink how we manage energy demand.

Global electricity demand is forecast to grow at close to 4% annually, a surge equivalent to adding the consumption of Japan to the world’s grid every year. While renewable energy is advancing at an unprecedented pace – clean sources powered 40% of the world’s consumption last year – the variability of supply is driving the need to prioritize demand-side management.

As leaders convene at the 2026 World Economic Forum Annual Meeting, the formation of a new Working Group on Energy Demand Management and Demand Flexibility is a pivotal moment. This diverse group of developers, technology providers, energy companies and manufacturers will define a shared vision: transforming passive energy consumption into dynamic, intelligent energy management.

By enabling every building, factory and data center to be more flexible and responsive in their interactions with the grid, we can cut costs, reduce emissions, create new market opportunities and build resilience into our energy systems.

At Trane Technologies, we see this transformation in action every day. Our purpose is to boldly challenge what’s possible to build a sustainable world. As a global climate innovator, we deliver energy-efficient technologies and solutions at scale, reducing energy use, saving cost and powering sustainable performance. We are transforming energy management and sustainability in buildings, industry, data centers and transport. We are infusing AI across our businesses for smarter, more efficient and more sustainable outcomes for customers, communities and the planet.

Propelled by our target to reduce our customers’ carbon footprint by 1 gigaton of emissions, our solutions convert energy waste into savings and reduced emissions. This goal shapes everything we do, from product innovation to strategic partnerships. As rapid adoption of AI drives new waves of data centers and infrastructure, the energy required is rapidly increasing, creating new challenges for cooling.

Advanced cooling technologies like liquid cooling and thermal battery storage not only boost the efficiency of data centers, they enable these assets to operate as flexible, resilient participants in a larger energy ecosystem. In some cases in Europe, we’re even partnering with communities to transform waste heat into a resource, heating local schools and homes while reducing energy demand.

Trane Technologies is collaborating with NVIDIA on the industry’s first comprehensive thermal management system reference design for gigawatt-scale AI factories, helping set new standards for performance, scalability, and rapid deployment. This new approach enables data center operators to simultaneously manage power, water and land resources, allowing for continuously optimized performance, energy efficiency and sustainability.

We are also leveraging AI to optimize the energy needed to run complex buildings. In a recent pilot with newly commissioned Amazon Grocery fulfilment facilities in North America, our BrainBox AI autonomous HVAC solution reduced energy use nearly 15%. Deployment is planned for the remaining Amazon Grocery fulfilment and distribution centres across 30 sites in the U.S. These advancements show the profound impact that precise energy demand management, powered by AI, can have on operational costs and carbon reduction.

Technology alone cannot achieve the scale and transformation we need. The most promising advancements I’m seeing in energy demand management are from our people. With their deep knowledge of our customers’ buildings and businesses, our vast network of skilled HVAC service technicians and energy experts is scaling demand management.

We are driving the next generation of workforce innovation in advanced energy solutions, equipping our people with digital fluency, including generative AI tools to amplify their impact and investing in apprenticeship programs and partnerships with organizations like Opportunity@Work to advance skills-based hiring.

At the foundation of it all is our sustainability strategy. We know our technologies must deliver returns. We know sustainability must make financial sense. This is why we are leaning into energy demand management. The ROI is there – for customers, shareholders and the environment.

Leading through transformative change means collaborating across industries and geographies. Trane Technologies is privileged to be at the heart of this evolution. We are championing smart, scalable energy demand management.

In the coming weeks, as the Working Group on Energy Demand Management convenes, we have a generational opportunity to define a shared path forward. If we seize it, we will build an energy infrastructure that drives competitiveness, equips communities for the future and safeguards our environment.

It starts now. The technology the world needs is available today and ready to be deployed at scale. By embracing energy demand management, we can shape a resilient and sustainable future, together.