U.S. Energy Information Administration: U.S. Electricity Consumption to Hit Record Highs in 2026 and 2027

The U.S. Energy Information Administration (EIA) stated in its Short-Term Energy Outlook report on Tuesday that U.S. electricity consumption, after reaching a record annual high for the second consecutive year in 2025, will further increase in 2026 and 2027. EIA projects that electricity demand will rise from the record-breaking 4,195 billion kilowatt-hours (kWh) in 2025 to 4,248 billion kWh in 2026, and further to 4,379 billion kWh in 2027. The surge in electricity demand is primarily driven by data centers focused on artificial intelligence and cryptocurrency, as well as increased use of electricity by households and businesses for heating and transportation, reducing reliance on fossil fuels. The agency noted that the growth in electricity demand is mainly led by the commercial sector, which is expected to surpass residential electricity consumption for the first time in 2027. EIA forecasts that in 2026, electricity sales will include 1,524 billion kWh for residential use, 1,527 billion kWh for commercial use, and 1,053 billion kWh for industrial use. Residential electricity prices are expected to rise by 5% in 2026 and continue to increase in 2027, though at a slower pace. Electricity prices are rising nationwide, with the largest increases likely to occur in the East Coast region.