Data Centers Driving US Power Consumption to Record Highs: EIA Forecast
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Data center demand to push US power use to record highs in 2025, '26, EIA says
June 10 (Reuters) - Power-hungry data centers that provide computing power for artificial intelligence and crypto currency will push U.S. electricity consumption to record highs in 2025 and 2026, the U.S. Energy Information Administration said in its Short Term Energy Outlook (STEO) on Tuesday. The EIA projected power demand will rise to 4,193 billion kilowatt hours (kWh) in 2025 and 4,283 billion kWh in 2026 from a record 4,097 billion kWh in 2024. In addition to data centers, American homes and businesses are expected to use more electricity for heat and transportation. The EIA forecast 2025 power sales will rise to 1,517 billion kWh for residential consumers, 1,474 billion kWh for commercial customers and 1,055 billion kWh for industrial customers. Those forecasts compare to all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,434 billion kWh in 2024 for commercial customers and 1,064 billion kWh in 2000 for industrial customers. The EIA said natural gas' share of power generation would slide from 42% in 2024 to 40% in 2025 and 2026. Coal's share will hold at 16% in 2025, the same as 2024, before easing to 15% in 2026, as renewable output rises. The percentage of renewable generation will rise from 23% in 2024 to 25% in 2025 and 27% in 2026, while nuclear power's share will hold at 19% in 2025, the same as 2024, before easing to 18% in 2026, according to the outlook. EIA projected gas sales in 2025 would rise to 13.1 billion cubic feet per day (bcfd) for residential consumers, 9.7 bcfd for commercial customers and 23.5 bcfd for industrial customers, but fall to 35.9 bcfd for power generation. That compares with all-time highs of 14.3 bcfd in 1996 for residential consumers, 9.6 bcfd in 2019 for commercial customers, 23.8 bcfd in 1973 for industrial customers and 36.9 bcfd in 2024 for power generation. Reporting by Scott DiSavino; Editing by David Gregorio Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:EnergyGrid & InfrastructureCoalGasClean Energy Scott Disavino Thomson Reuters Covers the North American power and natural gas markets.
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Data Center Demand to Push US Power Use to Record Highs in 2025, '26, EIA Says
(Reuters) -Power-hungry data centers that provide computing power for artificial intelligence and crypto currency will push U.S. electricity consumption to record highs in 2025 and 2026, the U.S. Energy Information Administration said in its Short Term Energy Outlook (STEO) on Tuesday. The EIA projected power demand will rise to 4,193 billion kilowatt hours (kWh) in 2025 and 4,283 billion kWh in 2026 from a record 4,097 billion kWh in 2024. In addition to data centers, American homes and businesses are expected to use more electricity for heat and transportation. The EIA forecast 2025 power sales will rise to 1,517 billion kWh for residential consumers, 1,474 billion kWh for commercial customers and 1,055 billion kWh for industrial customers. Those forecasts compare to all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,434 billion kWh in 2024 for commercial customers and 1,064 billion kWh in 2000 for industrial customers. The EIA said natural gas' share of power generation would slide from 42% in 2024 to 40% in 2025 and 2026. Coal's share will hold at 16% in 2025, the same as 2024, before easing to 15% in 2026, as renewable output rises. The percentage of renewable generation will rise from 23% in 2024 to 25% in 2025 and 27% in 2026, while nuclear power's share will hold at 19% in 2025, the same as 2024, before easing to 18% in 2026, according to the outlook. EIA projected gas sales in 2025 would rise to 13.1 billion cubic feet per day (bcfd) for residential consumers, 9.7 bcfd for commercial customers and 23.5 bcfd for industrial customers, but fall to 35.9 bcfd for power generation. That compares with all-time highs of 14.3 bcfd in 1996 for residential consumers, 9.6 bcfd in 2019 for commercial customers, 23.8 bcfd in 1973 for industrial customers and 36.9 bcfd in 2024 for power generation. (Reporting by Scott DiSavino; Editing by David Gregorio)
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Data center demand to push US power use to record highs in 2025, '26, EIA says
(Reuters) -Power-hungry data centers that provide computing power for artificial intelligence and crypto currency will push U.S. electricity consumption to record highs in 2025 and 2026, the U.S. Energy Information Administration said in its Short Term Energy Outlook (STEO) on Tuesday. The EIA projected power demand will rise to 4,193 billion kilowatt hours (kWh) in 2025 and 4,283 billion kWh in 2026 from a record 4,097 billion kWh in 2024. In addition to data centers, American homes and businesses are expected to use more electricity for heat and transportation. The EIA forecast 2025 power sales will rise to 1,517 billion kWh for residential consumers, 1,474 billion kWh for commercial customers and 1,055 billion kWh for industrial customers. Those forecasts compare to all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,434 billion kWh in 2024 for commercial customers and 1,064 billion kWh in 2000 for industrial customers. The EIA said natural gas' share of power generation would slide from 42% in 2024 to 40% in 2025 and 2026. Coal's share will hold at 16% in 2025, the same as 2024, before easing to 15% in 2026, as renewable output rises. The percentage of renewable generation will rise from 23% in 2024 to 25% in 2025 and 27% in 2026, while nuclear power's share will hold at 19% in 2025, the same as 2024, before easing to 18% in 2026, according to the outlook. EIA projected gas sales in 2025 would rise to 13.1 billion cubic feet per day (bcfd) for residential consumers, 9.7 bcfd for commercial customers and 23.5 bcfd for industrial customers, but fall to 35.9 bcfd for power generation. That compares with all-time highs of 14.3 bcfd in 1996 for residential consumers, 9.6 bcfd in 2019 for commercial customers, 23.8 bcfd in 1973 for industrial customers and 36.9 bcfd in 2024 for power generation. (Reporting by Scott DiSavino; Editing by David Gregorio)
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The U.S. Energy Information Administration predicts record-breaking electricity consumption in 2025 and 2026, largely due to power-hungry data centers supporting AI and cryptocurrency operations.
Data Centers Driving Record Power Consumption
The U.S. Energy Information Administration (EIA) has released its Short Term Energy Outlook (STEO), projecting that U.S. electricity consumption will reach unprecedented levels in 2025 and 2026. This surge is primarily attributed to the increasing power demands of data centers that support artificial intelligence and cryptocurrency operations 1.
Source: Reuters
Projected Power Demand
According to the EIA's forecast, power demand is expected to rise significantly:
- 2024: 4,097 billion kilowatt hours (kWh)
- 2025: 4,193 billion kWh
- 2026: 4,283 billion kWh
This upward trend is not limited to data centers. American homes and businesses are also anticipated to increase their electricity consumption for heating and transportation purposes 2.
Sector-wise Power Consumption
The EIA's projections for 2025 power sales across different sectors are as follows:
- Residential consumers: 1,517 billion kWh
- Commercial customers: 1,474 billion kWh
- Industrial customers: 1,055 billion kWh
These figures are approaching or surpassing previous record highs in their respective categories 3.
Shifting Energy Sources
The EIA's outlook also indicates a shift in the composition of power generation sources:
- Natural gas: Expected to decrease from 42% in 2024 to 40% in 2025 and 2026
- Coal: Projected to maintain a 16% share in 2025 before declining to 15% in 2026
- Renewable energy: Anticipated to increase from 23% in 2024 to 25% in 2025 and 27% in 2026
- Nuclear power: Forecasted to hold at 19% in 2025 before dropping to 18% in 2026
This trend suggests a gradual transition towards more renewable energy sources in the coming years 1.
Natural Gas Consumption Patterns
The EIA also provided projections for natural gas sales in 2025:
- Residential consumers: 13.1 billion cubic feet per day (bcfd)
- Commercial customers: 9.7 bcfd
- Industrial customers: 23.5 bcfd
- Power generation: 35.9 bcfd (a decrease from previous years)
These figures indicate varying trends across different sectors, with power generation expected to see a decline in natural gas usage 2.
The EIA's projections highlight the significant impact of technological advancements, particularly in AI and cryptocurrency, on the nation's energy consumption patterns. As the demand for computing power continues to grow, it will be crucial to monitor how this affects the overall energy landscape and the push towards more sustainable energy sources.
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