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September 14, 2026
How Energy Management Systems Help Meet Rising Energy Demands
Energy management systems are helping the built environment become more responsive and efficient by proactively managing energy use.
Global energy demand is growing rapidly. The International Energy Agency’s 2025 World Energy Outlook shows that global energy use could increase by as much as 15% by 2035. Meeting these needs will require better use of the energy we already produce, and energy management systems will play a crucial role in that effort. By reducing energy waste before adding new energy supply infrastructure, energy users can reduce pressure on the grid and make better use of our existing energy resources.
Smart energy management in the built environment will play a central role in creating a more efficient and resilient energy system. Buildings consume approximately one-third of the energy produced worldwide each year, and the U.S. Department of Energy estimates that approximately 30% of the energy purchased for commercial buildings is wasted.
Demand side energy management solutions can help change that equation in these ways:
- For building owners, these systems can reduce costs and improve performance.
- For the grid, they can reduce demand and grid stress.
- And, for the planet, they can help reduce energy-related emissions.
With the integration of digital technology and AI, energy management systems are more powerful and effective than ever before.
What are energy management systems?
Energy management systems combine digital technologies like connected sensors, meters and building controls with AI-powered optimization to monitor and adjust when, where and how buildings use energy across the built environment. Rather than just reporting energy consumption after it occurs, energy management systems proactively manage energy demand in real time. These systems can optimize consumption based on external factors like weather and energy prices, along with internal needs like occupancy or comfort requirements.
A building energy management system creates an interconnected platform to view and manage the systems that support daily building operations. Whether at a single site or across a building portfolio, this helps identify waste, prioritize improvements and make decisions that balance cost, energy use and performance.
Smart energy management systems that can connect end users’ needs with operational requirements and efficiency opportunities are essential to building a more resilient and flexible energy system. When buildings can reduce energy use and emissions or shift loads at critical times without compromising operations or comfort, they become active participants in the broader energy ecosystem.
Energy management systems can help meet the world’s growing energy needs while reducing costs and emissions.
How do energy management systems work?
Using connected technologies, controls, sensors and energy management systems can continuously improve performance. AI-powered technology is making building data more actionable for better energy management. By using data to make constant incremental adjustments to energy use, these systems can anticipate changing conditions and adjust before energy is wasted.
Energy management systems encompass much more than AI. Technologies like thermal energy storage, building automation and advanced heating and cooling equipment can work together to reduce energy consumption, helping large-scale energy users become good citizens of the grid. Ice-based storage tanks can hold energy as ice until it is needed. Thermal battery and heat pump systems integrate energy storage into a coordinated heating and cooling system. And high-efficiency HVAC equipment can help reduce overall energy consumption. Solutions like these are crucial components of an effective energy management strategy.
Energy management systems in action
Energy management systems are already creating value today. From sprawling university campuses to city skyscrapers, organizations are using these systems to reduce energy waste, lower costs and manage energy demand more effectively.
At Northern Illinois University, a comprehensive sustainability initiative shows how integrating energy management systems at scale can deliver meaningful financial and sustainability outcomes. The campus-wide project combined smart HVAC controls, thermal energy storage, solar arrays and lighting upgrades in over 90 buildings. The initiative is anticipated to reduce the school’s annual energy use by 26%, decrease greenhouse gas emissions by 11% and generate $5 million in annual savings.
Energy management systems are also delivering results across large commercial real estate portfolios. In 211 stores across Canada, national retailer Sleep Country implemented AI-optimized controls from BrainBox AI, a Trane Technologies company. The implementation reduced equipment cycling by 55%, which cut overall HVAC electricity use by 12.5% and gas use by over 9%. The company reduced total energy costs by approximately 12% during the first year of implementation.
And as technology continues to advance, cross-sector collaboration will help accelerate the development of more resource-efficient digital infrastructure. One such collaboration Trane Technologies is involved in is the Open Compute Project, which brings together organizations across the data center ecosystem to advance resource-efficient data center technology. Together with these industry leaders, we’re working to shape the future of sustainable digital infrastructure, contributing our expertise in advanced data center cooling, thermal management and system optimization.
Powering a more efficient and resilient energy future
No single solution can respond to our world’s growing energy needs alone. Meeting this challenge will require an integrated approach built around intelligent technologies and efficient equipment. And capturing the benefits of energy management systems is achievable now: organizations do not need to transform all systems at once. They can identify the highest-value opportunities, build flexible strategies, connect existing equipment and scale over time.
The future of energy will be shaped not just by how much power we produce, but by how intelligently we use it. By making energy use more transparent and responsive, energy management systems can help meet the world’s growing energy needs while reducing costs and emissions. At scale, these systems can help advance energy security and resilience across the energy ecosystem.
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