US Power Consumption to Hit Record Highs in 2026 and 2027, EIA Reports
The Energy Information Administration forecasts U.S. power consumption will reach new highs in 2026 and 2027. Driven by data centers and electrification, renewable energy is set to expand its share as fossil fuels decline.
Insights:
The Energy Information Administration (EIA) released its latest Short-Term Energy Outlook on January 13, 2025, projecting that U.S. power consumption will continue its record-setting trajectory. According to the EIA, power demand is expected to reach 4,256 billion kilowatt-hours (kWh) in 2026 and 4,364 billion kWh in 2027. This sustained growth is largely driven by the expansion of data centers supporting artificial intelligence and cryptocurrency operations, alongside the increasing electrification of heating and transportation.
The EIA's forecast indicates a significant shift in the U.S. power generation mix. Renewable energy sources are expected to expand their share from 24% of total generation in 2025 to 28% by 2027. In contrast, the share of fossil fuels is projected to contract, with natural gas declining from 40% in 2025 to 39% in both 2026 and 2027, and coal falling from 17% to 15% over the same period. Nuclear power is projected to hold steady, increasing slightly from 18% in 2025 to 19% in 2026 before returning to 18% in 2027.
