More than 140 countries and regions worldwide have announced their commitment to achieving carbon neutrality, making it a widely recognized global consensus. In the coming three to four decades, two definitive trends are set to reshape our world: digitization and decarbonization. Digitization is rapidly gaining momentum, impacting every individual, household, organization, and society as a whole. From smartphones and smart manufacturing to smart homes and autonomous driving, we are already immersed in the era of digitization, with more intelligent technologies on the horizon.In the age of carbon neutrality, the decarbonization goals are primarily focused on the energy industry, encompassing cleaner electricity generation, electrification of energy consumption, and the intelligent management of power grids. This transformation involves gradually replacing traditional fossil fuels with new energy sources, thereby initiating a comprehensive decarbonization process at its source. Digitization relies on digital technology, while decarbonization heavily depends on power electronics. The global energy industry is shifting from resource dependence to technology-driven innovation.Fossil fuels such as coal, oil, and natural gas are finite resources and unsustainable in the long run. They are also linked to extreme climate events and environmental pollution. In contrast, technology-driven clean energy is addressing these challenges and providing fresh impetus for global economic growth and sustainability.
According to the "Solar Futures Study" published by the U.S. Department of Energy, it is projected that by 2035, solar power will account for 40% of the total electricity supply in the United States, with the percentage rising to 45% by 2050. To achieve a carbon-neutral U.S. power system by 2050, an estimated 1,600 gigawatts of solar capacity will be required, with the entire energy system potentially necessitating 3,000 gigawatts. In Europe, the Energy Storage Association (EASE) estimates that 200 gigawatts of energy storage will be needed by 2030, increasing to 600 gigawatts by 2050. However, the current local battery production capacity in Europe struggles to keep up with the rapidly growing market demand, creating a significant market gap and driving increased demand for energy storage batteries.
Europe, the first region to declare its carbon neutrality goal by 2050, is undergoing an essential energy transition, and energy storage plays a critical role in supporting renewable energy sources. In recent years, Europe's residential energy storage market has primarily relied on a few leading countries, with Germany having the highest accumulated capacity to date. However, the market for residential energy storage is rapidly expanding in countries such as Italy, the UK, and Austria, making it increasingly attractive across the European region. In the highly competitive energy market, energy storage is gaining significant attention and is poised for steady growth.
In the Middle East and North Africa (MENA) region, the low-carbon energy industry is accelerating its project activities, with a projected project value of $257 billion by 2030. These industries include renewable energy (solar photovoltaic, wind, hydropower), hydrogen, nuclear energy, and waste-to-energy. Solar photovoltaic projects are expected to account for 50% of the project value, followed by hydrogen at 21%, nuclear energy at 14%, wind energy at 10%, and hydropower and waste-to-energy projects combined at 5%. By 2030, solar photovoltaic electricity generation in the MENA region is anticipated to reach 50 gigawatt-hours (GWh), with Saudi Arabia alone contributing 20 GWh, while Egypt and the UAE will each generate 10 GWh, and Qatar, Kuwait, and Oman will collectively produce 10 GWh.
Regions with optimal solar radiation and sunlight hours include North Africa, the Middle East, the southwestern United States, Mexico, Southern Europe, Australia, South Africa, the eastern and western coasts of South America, and western China. In recent years, under the dual goals of decarbonization and digitization, the global energy structure and system continue to transition towards clean, low-carbon, and secure energy sources, with renewable energy and electrification accelerating significantly. This transition has given rise to multiple billion-dollar and trillion-dollar emerging industries such as photovoltaics, wind power, new energy vehicles, hydrogen, and energy storage. These industries have risen to the core strategic level for countries worldwide. Meeting the ever-increasing energy demand while achieving energy transformation and seeking diversified economic development is an urgent challenge.
Under the trends of decarbonization, electrification, digitization, and smart technologies, the future of the digital world and the energy world will witness deep integration. The energy industry is entering a new era of digital energy. Looking ahead, data centers will serve as the cornerstone of the entire digital world, and as data centers evolve to be green, streamlined, intelligent, and secure, they will undoubtedly usher in a greener and more promising future for human society as a whole.