The Energy Information Administration (EIA) is forecasting that U.S. power consumption will reach record highs this year and in 2027.
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The EIA’s s Short-Term Energy Outlook report forecasts that electricity demand in America will surpass 2025’s record 4,198 billion kilowatt-hours (kWh) and reach 4,256 billion kWh this year. Electricity demand will rise further in 2027 to 4,364 billion kWh.
This surge in demand is partly attributed to data centers supporting artificial intelligence and cryptocurrency operations. Additionally, homes and businesses are increasingly using electricity instead of fossil fuels for heating and transportation.
For 2026, the EIA predicts power sales will reach 1,519 billion kWh for residential consumers, 1,522 billion kWh for commercial customers, and 1,069 billion kWh for industrial customers.
These projections follow 2025’s record-setting consumption levels of 1,516 billion kWh for residential users and 1,486 billion kWh for commercial customers. The industrial sector’s highest recorded usage remains 1,064 billion kWh from 2000.
As renewable energy production increases, natural gas’s share of power generation is expected to decrease from 40% in 2025 to 39% in both 2026 and 2027. Coal’s contribution will also decline, dropping from 17% in 2025 to 15% in the following two years.
Renewable energy sources are projected to increase their share from approximately 24% in 2025 to 25% in 2026 and 28% in 2027. Nuclear power’s portion will rise from 18% in 2025 to 19% in 2026 before returning to 18% in 2027.
The EIA also forecasts that natural gas sales in 2026 will decrease to 12.6 billion cubic feet per day (bcfd) for residential consumers, 9.4 bcfd for commercial customers, and 23.1 bcfd for industrial customers. However, gas usage for power generation is expected to increase to 35.8 bcfd.
These figures compare to historical peaks of 14.3 bcfd for residential users in 1996, 9.8 bcfd for commercial customers in 2025, 23.8 bcfd for industrial customers in 1973, and 36.8 bcfd for power generation in 2024.