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

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In short

The U.S. Energy Information Administration's Short-Term Energy Outlook projects that electricity consumption will set consecutive records through 2027. Commercial and residential electricity sales are forecast to reach fresh peaks in 2026, while industrial natural gas sales are slated to match a 1973 high of 23.8 billion cubic feet per day. Meanwhile, the power generation mix will shift, with renewable energy expanding its share to 28 percent by 2027 as coal usage falls to 15 percent.

Key points

  • Expanding renewable generation will supply 28 percent of national power by 2027 as coal's…: Expanding renewable generation will supply 28 percent of national power by 2027 as coal's share falls to 15 percent.
  • Natural gas generation will remain steady at 40 percent in 2026 before edging downward to…: Natural gas generation will remain steady at 40 percent in 2026 before edging downward to 39 percent the following year.
  • Nuclear power is projected to maintain a stable 18 percent share of the electricity gener…: Nuclear power is projected to maintain a stable 18 percent share of the electricity generation mix through 2027.

Sources checked by our analysis pipeline: 1

NEW YORK, Nov 10 : US electricity consumption will rise to record highs in 2026 and 2027 due to power-hungry AI data centers and electrification, the US Energy Information Administration said in its Short-Term Energy Outlook (STEO) on Tuesday.

The EIA projected that power demand will rise from a record 4,216 billion kilowatt-hours (kWh) in 2025 to 4,306 billion kWh in 2026 and 4,370 billion kWh in 2027. If correct, 2026 would be the third year in a row of record demand.

Demand is surging largely due to data centers dedicated to artificial intelligence. Homes and businesses have also been relying more on electricity and less on fossil fuels for heat and transportation.

The EIA forecast that power sales in 2026 will rise to 1,546 billion kWh for residential consumers, 1,557 billion kWh for commercial customers and 1,061 billion kWh for industrial customers.

The all-time highs stand at 1,519 billion kWh for residential consumers and 1,503 billion kWh for commercial customers in 2025 and 1,064 billion kWh for industrial customers in 2000.

As renewable output rises, the EIA said the…

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