US electricity demand is rising at a pace not seen in a generation, and data centers are the main reason. The Energy Information Administration forecasts the strongest four-year growth in national electricity demand since 2000, projecting power demand climbing toward 4,283 billion kilowatt-hours in 2026 from a record 4,097 billion in 2024. The agency expects US electricity use to grow about 1 percent in 2026, marking the first time since 2007 that demand has risen for four consecutive years.
Large computing centers are the dominant driver. US data center electricity demand is projected to reach about 75.8 gigawatts for IT equipment, cooling, lighting, and related uses in 2026. Utilities have sharply revised their planning as a result, with one analysis finding that the total five-year forward summer peak demand growth forecast published by utilities jumped from 38 gigawatts in 2023 to 128 gigawatts in 2024.
Regional grids feel the pressure unevenly. The systems managed by ERCOT in Texas and PJM in the Mid-Atlantic are expected to see the fastest data center demand growth through 2027, with central regions overseen by MISO and the Southwest Power Pool also facing high growth.
The surge is straining planning assumptions that had counted on flat demand for years. Utilities and grid operators are now weighing new generation, transmission upgrades, and power agreements to meet load that is materializing faster than traditional infrastructure timelines were built to handle.
Source: US Energy Information Administration - https://www.eia.gov/pressroom/releases/press582.php