EIA: US power consumption will surpass previous records in 2026 and '27, as AI usage surges.
The Energy Information Administration's Short-Term Energy Outlook released on Tuesday said that the U.S. electricity consumption will continue to rise in 2026-2027 due to data centers with AI and electrification.
EIA predicted that power demand would rise from 4,195 billion kilowatt hours (kWh) at a record in 2025, to 4,271 kWh?in?2026, and 4,397 kWh in '2027. The demand is soaring in part due to data centers that are dedicated to artificial intelligence, cryptocurrency and homes and businesses using more electricity.
The agency stated that the increase in electricity demand is led by the commercial sector. This is the first time in history that the residential sector will outpace the demand for electricity in 2026.
According to the EIA, residential power sales will decline to 1,512 billionkWh in 2026. However, commercial and industrial power sales are expected to rise to 1,547 trillionkWh.
These forecasts are compared to all-time records of 1,515 GWh for residential customers and 1,493 GWh for commercial customers by 2025. In 2000, industrial customers consumed 1,064 MWh.
The EIA predicted that as renewable energy output increases, coal's share in power generation will fall from 17% to 16% by 2026, and then 15% in 2027. Natural gas' share will remain at 40% in both 2026 and 2027.
According to the outlook, renewable energy will increase from 24% in 2025 to 27% in 2027. Nuclear power will remain at 18% until 2026 or 2027.
Gas sales for residential customers would drop to 12.5, while commercial customers would see a 9.4 billion cubic feet per days (bcfd). However, industrial customers could expect to see a 24.1 bcfd and 36.6 bcfd.
These figures are compared to all-time records of 14.3 billion cubic feet per day (bcfd) in 1996 for residential customers, 9.9 billion cubic feet per day in 2025 commercial customers, 23.8 million cubic feet per day in 1973 industrial customers and 36.8 BCFED in 2024 power generation. Scott DiSavino, Nia Williams and Scott DiSavino contributed to this report.
(source: Reuters)
