US power use to reach record highs in 2025 and 2026

US power consumption will hit record highs in 2025 and 2026, the Energy Information Administration said in its short-term energy outlook (STEO) on Tuesday, reports Reuters.

The EIA projected power demand will rise to 4,186 billion kilowatt-hours (kWh) in 2025 and 4,284 billion kWh in 2026, up from a record 4,097 billion kWh in 2024.

Those demand increases come in part from data centers dedicated to artificial intelligence and cryptocurrency and as homes and businesses use more electricity and less fossil fuels for heat and transportation. The EIA forecast 2025 power sales will rise to 1,515 billion kWh for residential consumers, 1,476 billion kWh for commercial customers, and 1,051 billion kWh for industrial customers.

Those forecasts compare to all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,434 billion kWh in 2024 for commercial customers, and 1,064 billion kWh for industrial customers in 2000.

The EIA said the share of power generation for natural gas would slide from 42 per cent in 2024 to 40 per cent in 2025 and 2026. Coal's share will rise from 16 per cent in 2024 to 17 per cent in 2025 before sliding to 15 per cent in 2026 as renewable output rises.