AI and cryptographic drive power demand to record highs by 2026
Former EPA Chief of Staff Mandy Gunasekara discusses President Donald Trump’s energy agenda and pursuit of a new natural gas project on “Varney & Co.”
The rise of artificial intelligence Additionally, the growing popularity of cryptocurrencies will continue to push electricity consumption to highs in 2025 and 2026.
The U.S. Energy Information Administration (EIA) said its latest Short-Term Energy Outlook (STEO) would increase from 419.3 billion kilowatt-hours (kWh) in 2025 in 2025, and from a record 409.7 billion kWh in 2024 to 428.3 billion kWh in 2026.
Data centers explain the most significant increase in electricity usage, but the report says American homes and businesses use more electricity for heat and transportation.
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The equipment used to capture carbon emissions can be found at a coal-fired power plant owned by NRG Energy in Thompson, Texas. (Reuters/Ernest Shader/Reuters Photos)
The EIA said Natural Gas ‘Share Power generation will slide from 42% in 2024 to 40% in 2025 and 2026. In 2025, the rate will be 16% in 2025, the same as 2024, and 15% in 2026.
The percentage of renewable generation will increase from 23% in 2024 to 25% in 2025 and 27% in 2026, but will be relaxed to 18% in 2026, just like in 2025 and in 2024.
As electricity usage grows beyond 2026, it raises the question of how the US will meet that demand. Phil Filnn, a senior market analyst at PriceFutures Group and a contributor to Fox Business, said the US needs a “all hand-on deck” approach.
The EIA said the share of natural gas generation will slide from 42% in 2024 to 40% in 2025 and 2026. (Getty Images/Mark Felix via Getty Images/Bloomberg)
Flynn said Trump administration It started well. He said, “We have done everything we can to use all sorts of energy to meet the demand needed to meet these challenges. They have not only signed executive orders to boost coal production in the United States, but are also trying to streamline and deploy advanced reactor technology.
Politics also plays a role. Flynn says the US has lost precious time in four years Joe Biden He was president because he was almost entirely focused on climate change. “We didn’t put much thought into the impact of the real world economy and our national security,” Biden said.
When it comes to the best power sources ready to accommodate the challenge, Flynn says there is no peculiar treatment.
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Data centers explain the most significant increase in electricity usage.
“The best and most adequate power source to meet this demand depends on which country you are in and what you are trying to achieve. Obviously, we want to talk about nuclear energy. Modular atomic energy plants are one way to meet this demand,” Flynn said. “But in the meantime, natural gas is clearly one of the fuels that promote this.”
Reuters contributed to this report.