Key Highlights

  • The EIA projects US power demand rising from a record 4,195 billion kilowatt-hours in 2025 to 4,356 billion in 2027.
  • Wholesale electricity prices are forecast to average $52 per megawatt hour in 2026, 11 percent above 2025.
  • Wholesale prices in the PJM region are projected to rise 41 percent, and Pacific Northwest prices fall 23 percent.
  • Renewables are projected to supply 27 percent of generation in 2027, while coal's share falls to 15 percent.

Demand Reaches New Peaks

US power consumption will rise to record highs in 2026 and 2027, driven by AI-hungry data centers and electrification, the US Energy Information Administration said in its Short-Term Energy Outlook on Tuesday. The agency projected that demand will rise from a record 4,195 billion kilowatt-hours in 2025 to 4,288 billion in 2026 and 4,356 billion in 2027.

Demand is surging largely because of data centers dedicated to AI and cryptocurrency. Homes and businesses are also using more electricity and less fossil fuel for heat and transportation.

Prices by Region

The EIA forecast that US wholesale electricity prices will average $52 per megawatt hour in 2026, 11 percent more than in 2025, primarily because of extreme weather events such as winter storms and higher-than-average summer temperatures. Prices across most hubs have stayed relatively stable in 2026, but the agency projects wholesale prices in the Mid-Atlantic and Midwest PJM region will rise 41 percent, while prices in the Pacific Northwest Mid-Columbia region are projected to fall 23 percent.

Sales Break Records

The agency forecast 2026 power sales of 1,541 billion kilowatt-hours to residential consumers, 1,549 billion to commercial customers and 1,055 billion to industrial customers. Those figures compare with all-time highs of 1,515 billion kilowatt-hours for residential consumers and 1,493 billion for commercial customers in 2025, and 1,064 billion for industrial customers in 2000.

The Generation Mix

As renewable output rises, the EIA said the share of generation from coal will slide from 17 percent in 2025 to 16 percent in 2026 and 15 percent in 2027. Natural gas will hold at 40 percent in 2026, the same as in 2025, before easing to 39 percent in 2027. Renewables will rise from around 24 percent in 2025 to 25 percent in 2026 and 27 percent in 2027, while nuclear's share holds at 18 percent in 2026 and 2027, the same as in 2025.

Gas Sales by Sector

The agency projected that natural gas sales in 2026 will slide to 12.5 billion cubic feet per day for residential consumers and 9.5 billion for commercial customers, but rise to 23.8 billion for industrial customers and 37.0 billion for power generation. Those figures compare with all-time highs of 14.3 billion cubic feet per day in 1996 for residential consumers, 9.9 billion in 2025 for commercial customers, 23.8 billion in 1973 for industrial customers and 36.8 billion in 2024 for power generation.