US Power Use Hits Record Highs in 2026-2027 on AI Demand
AI data centers are driving record US electricity demand, prompting significant regulatory responses. Texas has paused approvals for energizing large-load facilities due to grid strain, while PJM Interconnection has proposed new rules for large power users to secure their own generation capacity. These actions highlight growing concerns over grid capacity and reliability amidst rapid data center expansion.
The U.S. Energy Information Administration (EIA) forecasts record US electricity consumption in 2026 and 2027, largely driven by the expansion of AI data centers. Commercial electricity sales are projected to reach 1,528 billion kilowatt-hours in 2026, with the West South Central region, including Texas, expected to lead the nation's electricity sales growth.
In response to this surge, Texas has enacted a pause on approvals for energizing large-load facilities, including cryptocurrency-mining operations. Governor Greg Abbott directed state regulators and grid operator ERCOT on August 3 to audit and verify new capacity requests, as data centers account for approximately 90% of the 474 gigawatts in the interconnection queue. This move aims to differentiate real demand from speculative requests, a common industry practice where developers file multiple interconnection requests.
Elsewhere, PJM Interconnection, the regional grid operator serving Virginia and other mid-Atlantic states, has proposed rules to federal regulators requiring large new power users, such as AI data centers, to contract for their own new generation capacity to avoid curtailment during supply shortages. These regulatory efforts are underscored by concerns from the North American Electric Reliability Corporation (NERC) regarding frequency and stability hazards caused by unexpected disconnections of large computational loads.
Amidst these grid challenges, the EIA's outlook also projects record natural gas production, with coal's share of generation declining to 14% by 2027, while renewables, particularly utility-scale solar, are expected to grow significantly, meeting most new demand. The article emphasizes that the tension between data center growth and grid capacity is a global infrastructure issue.