U.S. electricity consumption is on track to reach record levels in both 2025 and 2026, driven by rapid growth in AI-powered data centers and industrial activity, according to the U.S. Energy Information Administration (EIA).

In its latest Short-Term Energy Outlook (STEO), the EIA projects power usage to reach 4,187 billion kilowatt-hours (kWh) in 2025 and rise further to 4,305 billion kWh in 2026. These figures surpass the previous record of 4,097 billion kWh, set in 2024.

The EIA also revised its electricity generation forecast upwards, expecting a 2.3% increase in 2025, followed by 3.0% growth in 2026. This is above earlier forecasts of 1.5% annual growth for both years.

The upward revision reflects colder-than-anticipated weather earlier in 2025 and increased demand forecasts from grid operators like ERCOT and PJM. Utilities are responding with record investments in grid infrastructure and transmission, aiming to support what analysts call an "unprecedented" demand surge.

Goldman Sachs estimates that AI-related electricity demand will account for two-thirds of incremental growth through 2030, with total U.S. power consumption rising 2.4% annually over the period.

Despite the optimism, analysts caution that projections carry a wide margin of error due to the uncertain pace of AI deployment and onshoring of manufacturing.