AI Data Center Demand Surges, U.S. Power Consumption to Hit New Highs This Year and Next

(New York, July 7, CNA Foreign News) U.S. authorities stated today that power consumption is expected to reach new highs this year and next, following record-breaking years in 2025, driven by surging electricity demand from artificial intelligence (AI) data centers and the increasing electrification of residential, commercial, and transportation sectors.

According to Reuters, the U.S. Energy Information Administration (EIA) released its "Short-Term Energy Outlook" today, forecasting that U.S. electricity demand will increase from a record 4.195 trillion kilowatt-hours (kWh) in 2025 to 4.269 trillion kWh in 2026 and 4.399 trillion kWh in 2027.

The significant increase in electricity demand is primarily due to AI and cryptocurrency data centers, as well as the gradual replacement of fossil fuels with electricity for heating and transportation in residential and commercial sectors.

The EIA noted that the growth in electricity demand is being driven by the commercial sector, which is projected to surpass the residential sector in electricity consumption for the first time in 2026, setting a historical record.

The EIA predicts that residential electricity consumption will slightly decrease to 1.508 trillion kWh in 2026, while commercial electricity consumption will rise to 1.550 trillion kWh. Industrial electricity consumption is estimated at 1.065 trillion kWh.

Regarding historical peak records, residential electricity consumption was 1.515 trillion kWh in 2025, commercial electricity consumption was 1.493 trillion kWh in 2025, and industrial electricity consumption was 1.064 trillion kWh in 2000.

The EIA stated that with the increase in renewable energy generation, the share of coal in power generation will decrease from 17% in 2025 to 15% in 2026 and 2027. The share of natural gas in power generation will remain at 40%, the same as in 2025.

According to the Short-Term Energy Outlook, the share of renewable energy in power generation will increase from approximately 24% in 2025 to 25% in 2026 and 27% in 2027. The share of nuclear power generation will remain at 18% in 2026 and 2027, the same as in 2025. (Intern intern translator: Lu Shih-ting / Editor: Liu Shu-chin) 1150708

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