Forecasts from the Energy Information Administration (EIA) reveal that US power consumption will reach record highs in 2025 and 2026, with expected increases driven by technological advancements and shift from fossil fuels, as reported by Reuters.
The EIA’s short-term energy outlook (STEO) indicates a rise in power demand to 4,186 billion kilowatt-hours (kWh) in 2025 and then up to 4,284 billion kWh by 2026.
Go deeper with GlobalData
This surge surpasses the previous record of 4,097 billion kWh set in 2024.
Data centres for artificial intelligence and cryptocurrency are contributors to this growing demand.
An increase in electricity usage over fossil fuels for heating and transportation needs in homes and businesses is influencing these projections.
According to the EIA forecast, residential consumers’ power sales are anticipated to climb to 1,515 billion kWh while commercial customers may see a rise to 1,476 billion kWh for 2025. Industrial customer sales are also expected at 1,051 billion kWh.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThese figures compare with past peaks, such as the residential sector reaching its all-time high at 1,509 billion kWh in 2022.
Commercial customers peaked at approximately 1,434 billion kWh in 2024, whereas industrial customers reached around 1,064 billion kWh in 2000.
According to EIA predictions, in terms of production sources, natural gas generation is anticipated to decrease from a 42% share in 2024 to 40% in 2025.
Coal’s portion is expected to increase from 16% in 2024 to 17% in 2025, before declining to 15% in 2026, as renewable energy production continues to grow.
Renewable energy’s contribution is on an upward trajectory from 23% towards 26% by 2026.
However, nuclear energy will witness a marginal decline, from 19% and maintain an 18% share throughout 2025 and 2026 as per STEO.
The EIA forecasts that by 2025, natural gas sales will reach 13.1 billion cubic feet per day (bcfd) for residential users, 9.7bcfd for commercial clients and 23.5bcfd for industrial consumers.
However, sales for power generation are expected to decline to 35.8bcfd.
In comparison, these figures reflect historical peaks: residential consumption hit a record 14.3bcfd in 1996, commercial use reached 9.6bcfd in 2019, industrial demand peaked at 23.8bcfd in 1973, and power generation soared to 36.9bcfd in 2024.
In January 2025, the EIA forecasted that new solar installations would boost electricity generation in the US. Utilities and power producers are expected to add 26GW of solar capacity in 2025, followed by an additional 22GW in 2026.
