Investing.com -- U.S. electricity consumption will continue climbing to new record highs in 2026 and 2027, following a second consecutive annual record in 2025, the Energy Information Administration said Tuesday in its Short-Term Energy Outlook.

The agency projected power demand will increase from a record 4,195 billion kilowatt-hours in 2025 to 4,248 billion kWh in 2026 and 4,379 billion kWh in 2027.

Data centers supporting artificial intelligence and cryptocurrency operations are driving much of the surge, along with increased electrification as homes and businesses shift away from fossil fuels for heating and transportation.

Commercial sector electricity demand is expected to surpass residential consumption in 2027 for the first time on record, the EIA said.

The agency forecast 2026 power sales will reach 1,524 billion kWh for residential consumers, 1,527 billion kWh for commercial customers and 1,053 billion kWh for industrial users.

These projections compare to all-time highs of 1,515 billion kWh for residential and 1,493 billion kWh for commercial in 2025, while industrial consumption peaked at 1,064 billion kWh in 2000.

Residential electricity prices are forecast to rise 5% in 2026, with continued increases in 2027 at a slower rate. The largest price increases are expected in East Coast regions.

Coal's share of power generation will decline from 17% in 2025 to 16% in 2026 and 15% in 2027, the EIA said. Natural gas will account for 39% of generation in 2026, down from 40% in 2025, before returning to 40% in 2027.

Renewable energy's portion of generation will grow from approximately 24% in 2025 to 25% in 2026 and 27% in 2027. Nuclear power will maintain an 18% share through all three years.

The EIA projected natural gas sales in 2026 will decrease to 12.4 billion cubic feet per day for residential consumers and 9.4 bcfd for commercial customers, while rising to 23.9 bcfd for industrial users and 36.0 bcfd for power generation.