The EIA anticipates that power demand will grow from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,269 billion kWh in 2026 and 4,399 billion kWh in 2027.
The surge in demand is largely attributed to data centers focused on artificial intelligence and cryptocurrency, along with increased electricity usage in homes and businesses, reducing reliance on fossil fuels for heating and transportation.
Electricity demand growth is primarily led by the commercial sector, which is expected to surpass residential demand for the first time in 2026, as stated by the agency.
The EIA forecasts that power sales for residential consumers will dip to 1,508 billion kWh in 2026, while they are anticipated to rise to 1,550 billion kWh for commercial customers and 1,065 billion kWh for industrial clients.
These projections contrast with previous record highs of 1,515 billion kWh for residential consumers and 1,493 billion kWh for commercial customers in 2025, as well as 1,064 billion kWh for industrial customers in 2000.
As renewable energy output increases, the EIA predicts the share of power generation from coal will decrease from 17% in 2025 to 15% in both 2026 and 2027, while the proportion from natural gas is expected to remain steady at 40% in 2026 and 2027, the same as in 2025.
The percentage of renewable generation will climb from about 24% in 2025 to 25% in 2026 and 27% in 2027, whereas nuclear power’s share will remain at 18% in 2026 and 2027, unchanged from 2025, according to the outlook.
The EIA projected gas sales for 2026 to decline to 12.5 billion cubic feet per day (bcfd) for residential consumers and 9.5 bcfd for commercial customers, but increase to 24.0 bcfd for industrial users and 36.6 bcfd for power generation.
These numbers are compared to record highs of 14.3 bcfd in 1996 for residential consumers, 9.9 bcfd in 2025 for commercial customers, 23.8 bcfd in 1973 for industrial customers, and 36.8 bcfd in 2024 for power generation.
