TOKYO, Jan 21 (Reuters) - Japan's electricity demand is expected to grow 5.3% over the next decade, driven by rising consumption from data centres and semiconductor factories, the country's grid monitor said on Wednesday.

Power consumption in fiscal 2035, ending March 2036, is projected to reach 846.13 billion kilowatt-hours (kWh), up from an estimated 803.37 billion kWh in fiscal 2025, according to the Organisation for Cross-regional Coordination of Transmission Operators, Japan (OCCTO).

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The growth rate was slightly below the 5.8% forecast a year earlier, as delays in construction schedules, design changes, and other issues at data centres pushed back planned start-up dates and the timing for reaching full demand levels. This has postponed the expected surge in power demand to later years, OCCTO said.

By sector, industrial demand is expected to lead the increase, rising 18.3% over the period, while household electricity consumption is anticipated to fall 5.7% due to a shrinking population and advances in energy efficiency.

Last year's forecast had projected an increase of 19.2% in industrial demand and a 5.4% decline in household consumption.

Electricity demand from new data centres and chip plants is seen increasing by 56.8 billion kWh by fiscal 2035, compared with last year's forecast of a 51.4 billion kWh rise by fiscal 2034.

OCCTO updates its 10-year electricity demand outlook annually, based on surveys of Japan's 10 major electric utilities.

Until its 2023 estimate, electricity demand had been projected to decline gradually, reflecting population shrinkage and the spread of energy-saving equipment, but in 2024, OCCTO revised its projections to show growth, citing surging demand from data centres and chip factories.

https://www.reuters.com/business/energy/japan-sees-rise-power-demand-data-centre-chip-growth-grid-monitor-says-2026-01-21/