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(Reuters) – U.S. power consumption, which hit its second straight annual record high in 2025, will rise further in 2026 and 2027, the Energy Information Administration said in its Short-Term Energy Outlook on Tuesday.
The EIA projected power demand will rise from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,248 billion kWh in 2026 and 4,379 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 fuels for heat and transportation.
Electricity demand growth is led by increase in the commercial sector, which is expected to outpace residential demand in 2027 for the first time on record, the agency said.
The EIA forecast power sales in 2026 will rise to 1,524 billion kWh for residential consumers, 1,527 billion kWh for commercial customers and 1,053 billion kWh for industrial customers.
Those forecasts compare with all-time highs of 1,515 billion kWh for residential consumers and 1,493 billion kWh for commercial customers in 2025, and 1,064 billion kWh for industrial customers in 2000.
Residential electricity prices are expected to increase by 5% in 2026 and to continue to rise in 2027, although at a slower pace, EIA said. Prices are rising across the U.S., but the largest increases will likely occur in regions along the East Coast.
As renewable output rises, the EIA said the share of power generation from coal will slide from 17% in 2025 to 16% in 2026 and 15% in 2027. Natural gas’ share would ease from 40% in 2025 to 39% in 2026 before rising back to 40% 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 hold at 18% in 2025, 2026, and 2027, according to the outlook.
The EIA projected gas sales in 2026 would slide to 12.4 billion cubic feet per day (bcfd) for residential consumers and 9.4 bcfd for commercial customers, but rise to 23.9 bcfd for industrial customers and 36.0 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.
Reporting by Scott DiSavino; Editing by Alistair Bell
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