US power demand to beat record highs in 2026 and 2027 as AI use surges, EIA says
SPY•US electricity consumption is projected to rise from a record 4,216 billion kWh in 2025 to 4,306 billion kWh in 2026 and 4,370 billion kWh in 2027, driven by AI data centers and electrification. The EIA expects coal’s generation share to fall to 15% and renewables’ share to rise to 28% in 2027.
1. Demand reaches new records
US electricity consumption will rise to record highs in 2026 and 2027, the Energy Information Administration said in its Short-Term Energy Outlook. It projected consumption of 4,306 billion kWh in 2026 and 4,370 billion kWh in 2027, up from a record 4,216 billion kWh in 2025.
2. Generation mix shifts
The EIA expects coal’s share of power generation to decline from 17% in 2025 to 15% in 2026 and 2027. Renewables’ share is projected to rise from around 24% in 2025 to 25% in 2026 and 28% in 2027, while natural gas is forecast at 40% in 2026 and 39% in 2027, and nuclear at 18% in both years.
3. Consumer use and gas sales
The EIA attributed rising power demand largely to AI data centers, as well as homes and businesses relying more on electricity and less on fossil fuels for heating and transportation. It projected 2026 electricity sales of 1,546 billion kWh to residential customers, 1,557 billion kWh to commercial customers and 1,061 billion kWh to industrial customers; gas sales to power generation were forecast at 37.4 billion cubic feet per day.
