Electricity consumption in the United States is climbing again after more than a decade of little to no growth. According to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook, demand is expected to continue rising through 2025 and 2026, setting new records beyond the previous high reached in 2024.
From the mid-2000s to the early 2020s, electricity use remained mostly flat. Increases in demand from population and economic growth were offset by improvements in energy efficiency and a shift in the economy toward less energy-intensive services. During that time, even as the U.S. economy expanded, overall electricity consumption held steady.
That pattern changed after 2020, which marked a low point in electricity use. Since then, electricity consumption has grown at an average rate of 1.7% per year, and this trend is expected to continue through 2026. The fastest growth is occurring in the commercial and industrial sectors. Electricity use in the commercial sector—including data centers—is projected to rise by 2.6% annually, while industrial demand is forecast to increase by 2.1% per year. Residential electricity use is also expected to grow, though more modestly at 0.7% per year, driven in part by weather-related energy needs.
The rising demand is prompting a buildout of electricity generation and storage infrastructure. Much of this new capacity comes from solar energy and battery storage systems, especially in states like Texas and California, as well as parts of the Midwest and the Northeast.
To manage the growing load, utilities and regulators are also expanding energy efficiency programs and demand response efforts. These initiatives help reduce strain on the grid during peak times. Data from the Federal Energy Regulatory Commission supports this trend. Additionally, work is underway to expand high-voltage transmission lines to improve reliability and balance the power supply across regions.
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