US power use to beat record highs in 2026 and 2027 as AI use surges, EIA says

By Scott DiSavino

NEW YORK, March 10 (Reuters) - U.S. power consumption, which hit its second straight record high in 2025, will rise further in 2026 and 2027, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO) on Tuesday.

The EIA projected power demand will rise from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,260 billion kWh in 2026 and 4,388 billion kWh in 2027.

Demand is surging due in large part to data centers dedicated to artificial intelligence and cryptocurrency, and as homes and businesses use more electricity and less fossil fuel for heat and transportation.

The EIA forecast power sales in 2026 will rise to 1,535 billion kWh for residential consumers, 1,525 billion kWh for commercial customers and 1,056 billion kWh for industrial customers.

The forecasts compare with all-time highs of 1,517 billion kWh for residential consumers in 2025, 1,486 billion kWh in 2025 for commercial customers and 1,064 billion kWh for industrial customers in 2000.

As renewable output rises, the EIA said the share of power generation from natural gas would hold at 40% in 2026, the same as 2025, before sliding to 39% in 2027. Coal's share will slide from 17% in 2025 to 16% in 2026 and 15% in 2027.

The percentage of renewable generation will rise from around 24% in 2025 to 25% in 2026 and 27% in 2027, while nuclear power's share will rise from 18% in 2025 to 19% in 2026 before easing back to 18% in 2027, according to the outlook.

The EIA projected gas sales in 2026 would slide to 13.0 billion cubic feet per day (bcfd) for residential consumers, 9.6 bcfd for commercial customers and 23.3 bcfd for industrial customers, but rise to 36.2 bcfd for power generation.

Those figures compare with all-time highs of 14.3 bcfd in 1996 for residential consumers, 9.9 bcfd in 2025 for commercial customers, 23.8 bcfd in 1973 for industrial customers, and 36.8 bcfd in 2024 for power generation.