U.S. power use will reach new highs driven by AI and electrification

By the Editorial Team · Thursday, September 10, 2026

The U.S. Energy Information Administration forecasts that electricity consumption will hit record highs in 2026 and 2027, driven largely by increased demand from AI data centers and rising electrification in homes and businesses. This surge underscores a broader transition toward renewable energy sources and reduced coal use, signaling a shift in the power generation landscape amid growing digital and environmental trends.

U.S. electricity consumption is expected to reach new record levels in 2026 and 2027, driven by increasing demand from artificial intelligence data centers and broader electrification trends, according to the U.S. Energy Information Administration (EIA).

The EIA’s Short-Term Energy Outlook, released Wednesday, projects that total power demand will rise from 4,195 billion kilowatt-hours (kWh) in 2025 to 4,270 billion kWh in 2026 and 4,349 billion kWh in 2027. This growth is largely attributed to the expanding electrical needs of data centers supporting artificial intelligence and cryptocurrency operations, as well as the shift toward electric heating and transportation in homes and businesses, reducing reliance on fossil fuels.

Sales of electricity are forecast to increase across all major sectors in 2026. Residential consumption is expected to reach 1,527 billion kWh, up from 1,515 billion kWh in 2025. Commercial usage is projected to rise to 1,542 billion kWh from 1,493 billion kWh the previous year. Industrial demand, meanwhile, is anticipated to slightly decrease from a historical peak of 1,064 billion kWh in 2000 to 1,059 billion kWh in 2026.

In terms of power generation mix, the EIA anticipates a continued shift toward renewable energy sources. The share of coal-fired electricity generation is forecast to decline gradually from 17 percent in 2025 to 16 percent in 2026 and further down to 14 percent in 2027. Natural gas is expected to maintain a steady share of approximately 40 percent through 2027, consistent with its role in 2025 and 2026.

Overall, these projections reflect wider energy market dynamics, including technological advancements and policy developments encouraging cleaner energy adoption amid growing electricity demand fueled by emerging digital technologies and electrification efforts.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.