US power demand to reach new highs through 2027, EIA says

Investing.com -- The United States will see electricity consumption climb to new record levels in 2026 and 2027, according to projections released today by the Energy Information Administration. The agency attributes the growth to expanding data center operations and increased electrification across the economy.

Power demand is expected to reach 4,268 billion kilowatt-hours in 2026 and 4,391 billion kWh in 2027, up from the record 4,195 billion kWh consumed in 2025, the EIA said in its Short-Term Energy Outlook.

Data centers supporting artificial intelligence and cryptocurrency operations are driving much of the increased consumption, along with greater use of electricity in homes and businesses as an alternative to fossil fuels for heating and transportation.

The EIA reduced its electricity demand forecast for Texas in 2027 following the governor's announcement on August 3 of a pause on new data center development in the state. The agency now expects Texas electricity load to grow 6% in 2027, down from its previous projection of 14% growth.

For 2026, the EIA projects residential power sales will decline slightly to 1,514 billion kWh from 2025's record of 1,515 billion kWh. Commercial sales are forecast to rise to 1,545 billion kWh, while industrial sales will hold at 1,064 billion kWh.

The share of electricity generated from coal will decrease from 17% in 2025 to 16% in 2026 and 15% in 2027, the agency said. Natural gas will maintain a 40% share through 2027, matching 2025 levels.

Renewable energy's portion of power generation will grow from approximately 24% in 2025 to 25% in 2026 and 27% in 2027. Nuclear power will hold steady at 18% in both 2026 and 2027, according to the outlook.

Natural gas sales in 2026 are projected to fall to 12.5 billion cubic feet per day for residential use and 9.5 bcfd for commercial customers. Industrial gas consumption is expected to rise to 23.9 bcfd, while power generation will use 36.6 bcfd.

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