Agency Report
U.S. power consumption is projected to reach record levels in the next two years, according to the Energy Information Administration’s short-term energy outlook released Tuesday.
The EIA forecasts power demand will climb to 4,199 billion kilowatt-hours in 2025 and further increase to 4,267 billion kWh in 2026, up from the 2024 record of 4,110 billion kWh.
This surge in electricity demand is partly attributed to data centers supporting artificial intelligence and cryptocurrency operations. Additionally, homes and businesses are increasingly shifting from fossil fuels to electricity for heating and transportation needs.
For 2025, the EIA projects power sales will reach 1,516 billion kWh for residential consumers, 1,486 billion kWh for commercial customers, and 1,055 billion kWh for industrial customers.
These figures approach or exceed historical peaks, with residential consumption surpassing the previous record of 1,509 billion kWh set in 2022. Commercial usage will exceed its all-time high of 1,451 billion kWh recorded in 2024, while industrial consumption will remain below its peak of 1,064 billion kWh from 2000.
The energy mix powering this increased demand is also changing. Natural gas’s share of power generation is expected to decrease from 42% in 2024 to 40% in both 2025 and 2026. Coal will temporarily rise from 16% in 2024 to 17% in 2025 before returning to 16% in 2026 as renewable energy expands.
Renewable generation is forecast to grow steadily from 22% in 2024 to 24% in 2025 and 25% in 2026. Meanwhile, nuclear power’s contribution will decline slightly from 19% in 2024 to 18% in the following two years.
For natural gas consumption, the EIA projects 2025 sales will increase to 13.2 billion cubic feet per day for residential users, 9.8 bcfd for commercial customers, and 23.7 bcfd for industrial customers, while decreasing to 35.9 bcfd for power generation.