US Power Consumption to Rise Amid Expanding Data Center Demand: EIA

Large data centers pose a ’significant near-term reliability challenge' for the U.S. power grid stability, the North American Electric Reliability Corp said.

In an aerial view, data centers are seen near a neighborhood in Ashburn, Va., on July 17, 2024. Northern Virginia, known as “Data Center Alley,” hosts the world’s highest concentration of data centers. Nathan Howard/Getty Images

Electricity consumption in the United States is projected to rise from 4,097 billion kilowatt-hours in 2024 to 4,193 billion kilowatt-hours this year, and to 4,283 billion kilowatt-hours in 2026, the Energy Information Administration (EIA) said in a June 10 report.

“We expect strong demand growth in the commercial sector because of the expansion of data centers,” the report stated. “We forecast that U.S. commercial electricity sector consumption will grow by 3 percent in 2025 and by 5 percent in 2026.”