US data center electricity demand is climbing sharply in 2026, and utilities across the country are working to add generation and transmission fast enough to keep up. Gartner projects that data center electricity consumption will grow 26 percent this year, part of a broader load surge tied to artificial intelligence computing.
The scale of the increase is significant. US data center power demand is expected to rise from 31 gigawatts in 2025 to 41 gigawatts in 2026, lifting data centers' share of total peak summer power demand from 4.1 percent to 5.3 percent. Goldman Sachs has projected that US data center power demand will roughly double by 2027.
Grid operators face real constraints. Data centers add large, concentrated blocks of load, often require firm power that runs continuously, and are frequently sited in specific regions due to latency and land requirements. Those characteristics can strain regional grids and put upward pressure on electricity prices for other customers.
Regional concentration compounds the challenge. Virginia's data center demand for grid power was expected to reach roughly 12.1 gigawatts in 2025, and Texas utility power demand from data centers was set to hit about 9.7 gigawatts, making those states focal points for transmission and generation planning.
Utilities are responding with new power purchase agreements, generation projects, and grid upgrades, while some operators pursue dedicated firm power sources, including natural gas and nuclear, to secure the continuous electricity these facilities require.
Source: Gartner - https://www.gartner.com/en/newsroom/press-releases/2026-06-10-gartner-says-data-center-electricity-demand-to-grow-26-percent-in-2026