EIA forecasts U.S. power consumption to rise in 2026 and 2027

Investing.com -- U.S. power consumption is projected to continue rising in 2026 and 2027 after hitting its second consecutive record high in 2025, according to the Energy Information Administration's Short-Term Energy Outlook released Tuesday.

The EIA forecasts electricity demand will increase from 2025's record 4,195 billion kilowatt-hours to 4,268 billion kWh in 2026 and further to 4,372 billion kWh in 2027.

This surge in demand is partly attributed to data centers supporting artificial intelligence and cryptocurrency operations, along with increased electricity usage by homes and businesses that are shifting away from fossil fuels for heating and transportation.

For 2026, the EIA predicts power sales will reach 1,541 billion kWh for residential consumers, 1,520 billion kWh for commercial customers, and 1,063 billion kWh for industrial customers.

These projections follow the all-time highs recorded in 2025 of 1,517 billion kWh for residential consumers and 1,486 billion kWh for commercial customers. The industrial sector's highest consumption was 1,064 billion kWh in 2000.

As renewable energy production increases, natural gas is expected to maintain a 40% share of power generation in 2025 and 2026 before declining to 39% in 2027. Coal's contribution will decrease from 17% in 2025 to 16% in 2026 and 15% in 2027.

Renewable energy sources are forecast to increase their share from approximately 24% in 2025 to 25% in 2026 and 27% in 2027. Nuclear power's contribution is expected to remain steady at 18% through 2027.

For natural gas consumption, the EIA projects that 2026 sales will remain at 13.1 billion cubic feet per day for residential consumers, decrease to 9.7 bcfd for commercial customers and 23.3 bcfd for industrial customers, while rising to 36.2 bcfd for power generation.

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