The U.S. faces a significant challenge with its power grid as electricity demand is projected to reach unprecedented levels due to the surging usage of artificial intelligence and cryptocurrencies. According to the latest Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA), power consumption is expected to rise to 4,193 billion kilowatt-hours (kWh) in 2025 and 4,283 billion kWh in 2026, up from a record 4,097 billion kWh in 2024.
This rise in electricity usage will be chiefly driven by data centers, alongside increased household and business demands for heating and transportation. The EIA projects a slight decrease in the share of electricity generated by natural gas, which will drop from 42% in 2024 to 40% in 2025 and 2026.
Meanwhile, coal’s share is expected to remain stable at 16% in 2025 before declining to 15% in 2026, as renewable energy sources become more prevalent. Renewable electricity generation is projected to grow from 23% in 2024 to 27% by 2026, while nuclear power’s contribution will remain relatively constant, declining from 19% in 2024 to 18% in 2026.
In light of increasing demand, Phil Flynn, a senior market analyst, emphasizes the need for a comprehensive approach to energy supply. He commends efforts made under the Trump administration to enhance energy production and promote nuclear technology.
Conversely, Flynn criticizes the Biden administration for prioritizing climate initiatives without adequate consideration for energy needs and security. Flynn notes that there is no universally optimal power source to tackle rising demand; the best solution varies by region and situation.
While modular atomic energy plants present a viable option, natural gas will continue to play a critical role in meeting the country’s energy requirements.
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