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

In 2026 and 2027, the United States is expected to surpass record power consumption levels, primarily fueled by the proliferation of artificial intelligence data centers and the electrification of various sectors, according to the US Energy Information Administration (EIA). The agency's Short-Term Energy Outlook (STEO) predicts that power demand will climb from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,288 billion kWh in 2026, and further to 4,356 billion kWh in 2027.

The surge in demand is primarily attributed to the growing infrastructure for artificial intelligence and cryptocurrency operations housed in data centers. Homes and businesses are also consuming more electricity, transitioning from fossil fuels to electricity for heating and transportation. EIA forecasts that residential consumers will purchase 1,541 billion kWh of power in 2026, a record high, surpassing the 1,515 billion kWh purchased in 2025.

Commercial customers are expected to consume 1,549 billion kWh in 2026, a record, up from 1,493 billion kWh in 2025. Industrial customers will consume 1,055 billion kWh in 2026, a record, up from 1,064 billion kWh in 2000.

Renewable energy sources are set to increase their share of the power mix. By 2026, coal-generated power is projected to decline from 17% in 2025 to 16%, while natural gas will remain at 40% in both 2026 and 2027. Renewable energy generation is expected to rise from 24% in 2025 to 25% in 2026, and further to 27% in 2027. Nuclear power's share will remain steady at 18% in both 2026 and 2027.

Gas consumption for residential and commercial customers will decrease, but industrial and power generation sectors will see increased demand.