The US Energy Information Agency (EIA) has forecast the largest electrical demand growth in the US market since 2000, fueled primarily by data center demand growth across the country.

In its January Short-Term Energy Outlook, the EIA forecast that US electricity use would grow by one percent this year and by three percent in 2027. According to the EIA, the increase would mark the first time since 2007 that power demand has risen for four years in a row and the strongest four-year growth period since 2000.

"US 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 US Energy Information Administration. "Natural gas supply is critical as we forecast that US liquefied natural gas exports expand, and electricity demand rises through 2027, driven largely by increasing demand from large computing facilities, including data centers."

US utilities have projected huge load growth from data center customers over the remainder of the decade. For example, in October, American Electric Power (AEP) – which serves 11 US states – reported that its pipeline of load additions by 2030 had risen from 24GW to 28GW since Q2 2025, with roughly 80 percent of the growth tied to commercial data centers.

Similar growth projections have been noted across the country, with Wood Mackenzie reporting in October that US utilities have committed to connecting more than 160GW of new large-load demand through 2037.

According to the EIA report, solar power is expected to supply the largest increase in power generation, increasing by a projected 21 percent in both 2026 and 2027 following the addition of almost 70GW of new capacity.

Natural gas generation is forecast to remain flat in 2026 and increase by one percent in 2027. Coal-fired power generation is expected to fall by nine percent in 2026 and remain flat in 2027.

The current US administration under President Trump has prioritized gas and coal over renewables since his inauguration last year, in part to meet surging demand from the data center sector. The US Department of Energy has taken a very pro-coal stance and, in October, launched a $625m fund to retrofit and recommission old coal power stations.

In November, DCD reported that US utilities have been increasingly moving away from commitments to shutter coal plants under pressure from the administration. Chris Womack, CEO of energy utility Southern Company, said that: “We've got to build a lot of natural gas, be that combined cycle or combustion turbines. We're going to extend coal plants as long as we can because we need those resources on the grid."

Renewables, on the other hand, have seen support slashed. Last July, the US Senate passed President Trump’s “Big Beautiful Bill,” which imposed a 50 percent tax on wind projects and a 30 percent tax on solar projects completed after December 2027, if they cannot prove they haven’t used Chinese components.

According to the Rhodium Group, the excise tax on wind and solar would increase their cost by 10-20 percent on top of losing the tax credits, with the additional costs likely passed onto consumers. This could lead to up to 4,500 clean energy projects not going ahead, potentially adding billions of dollars to annual energy costs.