US power use to beat record highs in 2026 and 2027 as AI use surges, EIA says
XLU•US electricity demand is forecast to rise from a record 4,195 billion kWh in 2025 to 4,288 billion in 2026 and 4,356 billion in 2027, driven by data centers and electrification. The EIA sees renewables’ generation share rising to 27% in 2027, while coal’s falls to 15%.
1. Demand sets new records
The EIA projects US power demand will reach 4,288 billion kilowatt-hours in 2026 and 4,356 billion in 2027, up from a record 4,195 billion in 2025. It cited AI-focused data centers and electrification as drivers, as homes and businesses use more electricity and less fossil fuel for heat and transportation.
2. Prices and generation mix
The EIA forecasts wholesale electricity prices will average $52 per megawatt-hour in 2026, 11% above 2025, primarily because of extreme weather. It projects coal’s share of generation will decline from 17% in 2025 to 15% in 2027, while renewables’ share rises from 24% to 27%; natural gas is forecast to hold at 40% in 2026 before easing to 39% in 2027.
3. Customer sales forecasts
Residential electricity sales are forecast at 1,541 billion kWh in 2026 and commercial sales at 1,549 billion kWh, both above their 2025 records. Industrial sales are projected at 1,055 billion kWh, below the 1,064 billion kWh record set in 2000.
