EIA: US power consumption will surpass previous records in 2026 and '27, as AI usage surges.
?U.S. The Energy Information Administration's (EIA) Short-Term Energy Outlook, published on Tuesday, said that the power consumption will continue to rise in 2026-2027 due to data centers with AI and electrification.
The EIA projects that the power demand in 2027 will increase from 4,195 billion Kilowatt-hours in 2025, to 4,269 billion in 2026, and 4,399 in 2027.
The demand for electricity is increasing as more homes and businesses switch to electric heat and vehicles and use less fossil fuels.
The agency stated that the increase in electricity demand is primarily due to the growth in the commercial sector. This is the first time in history where the residential demand will surpass the demand for electricity in 2026.
In 2026, the EIA predicts that power sales for residential customers will be lowered to?1,508 bn kWh. However, they will rise to 1,550 bn kWh in commercial customers' accounts and to 1,065 bn kWh in industrial customers' accounts.
These forecasts are compared to all-time records of 1,515 billions kWh in 2025 for residential customers, 1,493 for commercial customers and 1,064 for industrial consumers in 2000.
The EIA says that as renewable energy increases, coal's share in power generation will fall from 17% to 15% by 2026-2027. Natural gas will remain at 40% in 2026-2027.
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 billion cubic foot per day (bcfd), while commercial customers would see a 9.5 bcfd increase. However, industrial customers will see a 24.0 bcfd rise and 36.6 bcfd in power generation.
These figures compare 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 for business customers, 23.8 million cubic feet per day in 1973 for industrial clients, and 36.8 BCFED in 2024 for electricity generation. Reporting by Scott DiSavino, Editing by Andrea Ricci
(source: Reuters)
