U.S. Power Consumption to Reach Record Highs in 2025 and 2026

Surging Demand Driven by Data Centers, Home Automation, and Electric Vehicles

The U.S. Energy Information Administration (EIA) predicts that power consumption in the United States will reach record levels in both 2025 and 2026. According to the agency's Short Term Energy Outlook, power demand is projected to rise to 4,179 billion kilowatt hours (kWh) in 2025 and 4,239 billion kWh in 2026.

This surge in electricity consumption is being driven by several factors, including the growing demand from data centers dedicated to artificial intelligence and cryptocurrency mining. Additionally, homes and businesses are using more electricity for heating and transportation, with the increasing adoption of electric vehicles.

Residential, Commercial, and Industrial Demand

EIA forecasts that residential electricity sales will reach record highs in 2025, with demand reaching 1,524 billion kWh. Commercial customers are also expected to consume a record 1,458 billion kWh in electricity, while industrial demand is projected to reach 1,054 billion kWh.

Shift in Power Generation Mix

The outlook indicates that natural gas will continue to play a significant role in power generation, but its share is expected to decline slightly from 43% in 2024 to 40% in 2025 and 39% in 2026. Conversely, renewable energy sources are projected to increase their share from 23% in 2024 to 25% in 2025 and 27% in 2026. Coal's share is also expected to ease to 15% in 2026, while nuclear power is expected to maintain its 19% share.

Natural Gas Demand

EIA also projects that natural gas sales will increase in some sectors. Residential gas consumption is expected to rise to 13.1 billion cubic feet per day (bcfd) in 2025, while commercial demand is projected to reach 9.7 bcfd. However, industrial gas demand is expected to decline to 23.1 bcfd, and power generation demand is expected to fall to 35.7 bcfd.