U.S. electricity demand is expected to continue rising through 2026, adding near-term pressure on power markets. The EIA projects total U.S. electricity consumption will approach 4,250 billion kilowatt‑hours in 2026, up 1.3% in 2025.

Demand growth is being led by the commercial sector, driven largely by expanding data center activity and broader electrification trends. In contrast, residential electricity demand is expected to remain relatively flat, reflecting slower growth in household usage. Demand growth is strongest in Texas and the West South Central region, driven by data centers and manufacturing expansion.

These trends underscore how rising commercial load, especially data centers, is becoming a primary driver of near-term market pressure.

Read more: EIA Short Term Energy Outlook