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4w ago

U.S. Power Demand Set to Hit Record Peaks in 2025 and 2026

The Energy Information Administration credits soaring data-center energy use as a key factor in the projected consumption spike

Windmills are seen behind electricity pylons in Palm Springs, California, U.S., November 25, 2017. REUTERS/Lucy Nicholson/File Photo
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Overview

  • The EIA projects U.S. electricity demand will reach 4,186 billion kWh in 2025 and 4,284 billion kWh in 2026, surpassing the 4,097 billion kWh record in 2024.
  • Commercial-sector power sales are forecast to grow 3 percent in 2025 and 4.5 percent in 2026, largely driven by data-center loads.
  • Residential, commercial and industrial sales are expected at 1,515, 1,476 and 1,051 billion kWh respectively in 2025, marking new highs in household consumption.
  • The generation mix is set to shift with renewables rising from 23 percent of output in 2024 to 24 percent in 2025 and 26 percent in 2026 as natural gas share falls to 40 percent.
  • Household electricity prices are forecast to rise about 4 percent in 2025, stoking concerns over grid capacity, reliability and energy policy decisions.