US electricity supply reached 2,234 terawatt-hours in the first half of 2025, up 3% from the prior year and marking a record high, according to clean energy think tank Ember reported by Yonhap Infomax on an unspecified date. The US Energy Information Administration (EIA) attributed much of this growth to data center expansion, which has emerged as the primary driver of long-term electricity production increases in the country. Total US electricity consumption hit a record 4.195 trillion kilowatt-hours in 2024, with projections of 4.269 trillion kWh for 2025 and 4.399 trillion kWh for 2026, representing the first sustained demand surge in a decade and raising questions among policymakers about transmission grid capacity and residential pricing impacts.
Data Centers Drive US Electricity Demand to 66 Gigawatts by 2027
Commercial sector electricity sales are expected to exceed residential customer sales for the first time this year, with data centers projected to make the commercial sector the largest electricity consumer ahead of residential and industrial segments next year as well, according to the source. Goldman Sachs projects US data center power demand will more than double from 31 gigawatts in 2024 to 66 gigawatts by 2027. The investment bank estimates data centers will account for 8.5% of US summer peak electricity demand by 2027, up from 4.1% in 2024, a shift Goldman Sachs warns could trigger significant volatility across national electricity markets.
Natural Gas and Solar Reshape US Power Generation Mix Through 2026
Natural gas is projected to maintain approximately 40% of electricity generation through 2025 and 2026, while nuclear power is expected to hold steady at 18%, according to the source. Coal's share is forecast to decline from 17% in 2024 to 15% in both 2025 and 2026. Solar generation reached a record 12.8% in May, surpassing coal generation's 12.2% monthly share for the first time on a monthly basis. Ember senior data analyst Nicholas Fulghum stated, "Markets across the United States from Texas to California are betting on solar to meet rising electricity demand."
Solar Capacity Dominates 91% of New US Grid Additions in Q1 2025
Solar and electricity storage systems accounted for 91% of new power generation capacity added to the US grid in the first quarter of 2025, according to the source. States won by President Donald Trump represented 74% of total solar installation capacity in the first quarter, with Texas identified as the fastest-growing solar market in the country, Yonhap Infomax reported citing OilPrice.com.
FAQ
What drove US electricity supply to a record high in the first half of 2025?
US electricity supply reached 2,234 terawatt-hours in the first half of 2025, up 3% year-over-year, driven primarily by data center expansion according to the US Energy Information Administration as reported by clean energy think tank Ember.
How much will US data center power demand grow by 2027?
Goldman Sachs projects US data center power demand will more than double from 31 gigawatts in 2024 to 66 gigawatts by 2027, increasing data centers' share of summer peak electricity demand from 4.1% in 2024 to 8.5% by 2027.
What percentage of new US grid capacity in Q1 2025 came from solar and storage?
Solar and electricity storage systems accounted for 91% of new power generation capacity added to the US grid in the first quarter of 2025, with 74% of solar installations occurring in states won by President Donald Trump.
