US power demand to hit new highs on data center buildout
US power demand is projected to reach new peaks in 2026 and 2027, primarily driven by data center expansion, according to a federal forecast. This outlook comes as the Energy Information Administration lowered its demand projections for Texas following the governor's implementation of a data center construction moratorium. The report also anticipates a decrease in coal's share of power generation, largely replaced by renewables.
The Energy Information Administration (EIA) forecasts that U.S. power demand will reach unprecedented levels in 2026 and 2027, following two consecutive years of record-breaking peaks. This surge in electricity consumption is primarily attributed to the rapid buildout of data centers across the country. The federal agency's projections highlight the significant impact of the expanding digital infrastructure on the national power grid.
In a notable development reflecting state-level interventions, the EIA adjusted its demand outlook for Texas. This revision came after the state's Republican governor enacted a moratorium on new data center construction last week, a move aimed at addressing concerns related to energy consumption and infrastructure. The report also indicated a broader shift in the national energy landscape, predicting that coal's contribution to power generation will drop to 15% by 2027, with renewable energy sources expected to fill most of this gap.