Surging electricity consumption driven by AI and data centers ends a decade of stagnant U.S. power use, with demand set to rise further.
U.S. electricity demand reached an all-time high in 2023, driven by the rapid expansion of AI and data centers. The trend is expected to continue, with new records projected for 2024 and 2025 as power consumption grows at an accelerated pace.
After a decade of stagnant demand, the AI boom and rising electrification rates have reversed the trend. Natural gas remains the dominant source of U.S. power generation, which is also rising to meet increased demand.
The shift marks a structural change in energy markets, with data centers now a primary driver of electricity consumption growth.