U.S. Power Demand Growth Outlook 2027

EIA projects rising electricity use driven by data centers and gas exports

The U.S. Energy Information Administration has released its January Short-Term Energy Outlook, offering its first detailed energy forecast through 2027. The report shows that U.S. electricity demand is expected to grow steadily, marking the strongest multi-year increase in more than two decades.

Electricity use is projected to rise by about one percent this year and by three percent in 2027. This growth is largely driven by the expansion of large computing centers, including data centers that support cloud services and artificial intelligence systems.

"U.S. energy production remains strong, and natural gas output is expected to grow to nearly 109 billion cubic feet per day this year," said Tristan Abbey, Administrator of the U.S. Energy Information Administration. "Natural gas supply is critical as we forecast that U.S. liquefied natural gas exports expand and electricity demand rises through 2027, driven largely by increasing demand from large computing facilities, including data centers."

Natural gas production is forecast to remain strong. U.S. output is expected to reach nearly 109 billion cubic feet per day this year. At the same time, liquefied natural gas exports are forecast to increase from 15 billion cubic feet per day in 2025 to 18 billion cubic feet per day by 2027. Rising exports and power sector demand are expected to push natural gas prices higher by 2027.

Brent crude oil prices are expected to decline in 2026 due to rising global oil supplies. Lower oil prices are forecast to reduce drilling activity and cause a slight drop in U.S. crude oil production in 2027. Gasoline prices are also projected to fall in 2026 and remain mostly stable afterward.

Solar power is expected to see the fastest growth among all energy sources. Solar generation is forecast to increase by more than 20 percent in both 2026 and 2027. Wind and nuclear power are expected to remain steady, while coal generation is forecast to decline further.

The energy mix is projected to continue shifting toward cleaner sources. By 2027, natural gas will remain the largest electricity source, followed by nuclear, wind, and solar. Carbon dioxide emissions are expected to stay stable, reflecting improvements in efficiency and cleaner power generation.

Overall, the outlook shows a growing need for reliable and cleaner energy supplies as the U.S. economy and digital infrastructure continue to expand.

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