Electricity demand is poised for notable growth in 2026 and 2027, marking the strongest four‑year stretch of consumption increases since the early 2000s. Most of this momentum comes from the commercial and industrial sectors, driven heavily by data center expansion, advanced manufacturing, and energy‑intensive processing.

Regionally, the West South Central region, including Texas, leads the nation. Commercial electricity sales in the region are expected to increase by 10 billion kilowatt hours (BkWh) in 2026 and 33 BkWh in 2027, accounting for about 30% to 50% of total U.S. commercial‑sector growth in each year. Industrial demand in this region also surges, tied to oil and gas extraction, refining, and LNG production.

Solar leads future generation growth, with the EIA forecasting more than 20% increases in both 2026 and 2027 as more capacity is expected to come online. Wind generation rises modestly at 6% annually, while natural gas stays mostly unchanged and coal generation has an expected decline in 2026.

Read more: EIA.gov