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AI, Crypto Fuel US Power Demand Surge
13 May
Summary
- US power consumption hit a record in 2025 and is projected to rise.
- Data centers for AI and crypto are major drivers of surging demand.
- Commercial sector electricity demand will surpass residential in 2027.
U.S. power consumption is set for further growth following a second consecutive annual record high in 2025. Projections indicate demand will increase from 4,195 billion kilowatt-hours in 2025 to 4,248 billion kWh in 2026 and 4,379 billion kWh in 2027, according to the Energy Information Administration. This escalating demand is significantly fueled by data centers dedicated to artificial intelligence and cryptocurrency, alongside a general trend of homes and businesses adopting electricity over fossil fuels for heating and transportation.
The commercial sector is leading this electricity demand increase and is expected to outpace residential demand in 2027 for the first time on record. Residential power sales are forecast to reach 1,524 billion kWh in 2026, with commercial sales at 1,527 billion kWh and industrial sales at 1,053 billion kWh.
Looking ahead, residential electricity prices are anticipated to rise by 5% in 2026 and continue increasing in 2027, with the most significant hikes expected along the East Coast. Concurrently, the generation mix is shifting. Coal's share of power generation will decline from 17% in 2025 to 15% by 2027, while renewable energy's share is projected to grow from 24% in 2025 to 27% in 2027. Nuclear power's contribution will remain stable at 18%.
