Why Is the Demand for Electricity Rising?
Demand for electricity in the U.S. is booming. Recent data show that power consumption nationwide is set to increase by at least 38 gigawatts (enough to power more than 30,000,000 homes) between now and 2028. Meeting this new demand will require a combination of new power plants, grid upgrades, and energy storage technology advancements. Here are the key factors that are driving increased demand:
- Increased electrification: Electric vehicle adoption, electrification of home heating, and industrial electrification are increasing overall U.S. energy consumption.
- Data centers: Driven by explosions in AI, cryptocurrency, and cloud computing, total U.S. data center load is projected to increase by 65% by 2050.
- Economic growth: Residential power consumption is expected to increase by 14% to 22% through 2050 due to increases in population and steady economic growth.
- Manufacturing growth/onshoring: New, expanding, and “onshored/reshored” manufacturing capacity driven by federal incentives is expected to increase industrial demand by 13,000 GWh per year.