U.S. electricity demand is set to hit record highs in 2026 and 2027, driven largely by the rapid expansion of AI and Big Tech data centers. The biggest constraint is the grid, particularly transmission. Aging infrastructure, limited transmission capacity, and a shortage of transformers could prevent new generation from reaching fast-growing demand centers.
U.S. demand for electricity has already had two record-breaking years: 2024 and 2025. The trend is seen extending and possibly accelerating because of the IT industry and its artificial intelligence race, hitting 4,268 billion kWh this year and rising further to 4,391 billion kWh in 2027.
But for that to happen smoothly and without blackouts, the grid needs to start getting upgraded. Some see those upgrades as mostly expansion, through new transmission lines and transformers, simply because the area of demand has expanded with population growth and the growth in demand centers.
