U.S. power demand on track for records in 2026 and 2027
The Energy Information Administration expects data centers to push electricity use to new highs, with household power prices up about 5% this year.
U.S. electricity use will set records this year and next, and households will pay more for it, according to a federal forecast released Tuesday.
The Energy Information Administration projects power demand of 4,306 billion kilowatt-hours in 2026 and about 4,370 billion in 2027, up from a record 4,216 billion in 2025, Reuters reported. If the forecast holds, 2026 will be the third straight record year.
The agency pointed to AI data centers as the main driver, along with homes and businesses switching to electricity for heating and transportation.
Prices are rising with demand. The average residential price is forecast at 18.17 cents per kilowatt-hour in 2026, up about 5% from 17.24 cents in 2025, and 18.68 cents in 2027, according to Quiver Quantitative’s summary of the outlook.
Commercial customers, the category that includes data centers, account for the biggest jump. The agency expects commercial sales of 1,557 billion kilowatt-hours in 2026, well above the 2025 record of 1,503 billion. Residential sales are forecast at 1,546 billion, also a record. Industrial sales, at 1,061 billion, would fall just short of a record set in 2000.
Natural gas remains the largest source of generation at 40% in 2026, slipping to 39% in 2027. Coal drops from 17% in 2025 to 15%. Nuclear holds at 18%. Renewables grow from about 24% in 2025 to 28% in 2027, with utility-scale solar supplying most of the new generation.
Power plants are also expected to burn a record 37.4 billion cubic feet of natural gas per day in 2026, topping the 2024 high of 36.8 billion.
Sources: Reuters via BOE Report, Quiver Quantitative
