US power demand to climb through 2027 on data centers, EIA says

Investing.com -- US electricity consumption will continue to climb in 2026 and 2027 after reaching a second consecutive annual record in 2025, the Energy Information Administration said Tuesday. The agency attributed the growth to data centers supporting artificial intelligence and cryptocurrency operations, along with increased electrification.

The EIA projected power demand will reach 4,269 billion kilowatt-hours in 2026 and 4,399 billion kWh in 2027, up from 4,195 billion kWh in 2025.

Commercial sector electricity sales are expected to surpass residential consumption in 2026 for the first time on record, the agency said. Power sales to commercial customers are forecast to reach 1,550 billion kWh in 2026, while residential sales will decline to 1,508 billion kWh. Industrial customer sales are projected at 1,065 billion kWh.

In 2025, residential sales reached 1,515 billion kWh and commercial sales hit 1,493 billion kWh.

Coal's share of power generation will decrease from 17% in 2025 to 15% in both 2026 and 2027, the EIA said. Natural gas will maintain a 40% share through 2027, unchanged from 2025.

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

Natural gas sales for power generation are expected to reach 36.6 billion cubic feet per day in 2026, below the record 36.8 bcfd set in 2024. Industrial gas consumption is forecast to rise to 24.0 bcfd, exceeding the previous high of 23.8 bcfd from 1973.

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