Demand for power is rising faster than it has in a generation. Here's what's driving it, why prices keep climbing, and what it means for homeowners.
This is the big one. U.S. data-center electricity demand is projected to jump from about 31 gigawatts in 2025 to 41 GW in 2026, and to keep climbing after that — rising from roughly 4.1% to 5.3% of peak summer demand in a single year. Goldman Sachs and grid watchdogs warn these facilities compete for power during peak hours, and the cost of securing that supply increasingly lands on everyday ratepayers. One analysis attributed about $23 billion of recent PJM capacity costs to data centers.
About 27% of cars sold globally in 2026 are expected to be electric, up from 9% five years ago, with more than half of passenger vehicles projected to be electric by 2035. Every EV adds steady new load — often in the evening, near existing residential peaks. Utilities are investing heavily to handle it (global estimates run into the hundreds of billions of dollars), and those investments show up in rates over time.
More people, more homes, and a broad shift from gas to electric — heat pumps, induction stoves, electric water heaters — all push household electricity use upward. Commercial electricity sales alone are expected to rise about 4.5% in 2026, largely from data centers, on top of steady residential growth. The trend line for demand is simply up.
Much of America's grid was built for a slower-growing, less-electrified era. Adding large new loads faster than transmission and generation can keep up creates congestion, and congestion raises prices. Building new lines and plants takes years — which is part of why on-site generation like rooftop solar is getting more attention as a way to ease strain and hedge cost.
You can't control data-center demand or national policy. You can control how exposed your household is to rising rates. That's the case for owning solar: produce a large share of your own power and lock in much of your energy cost while grid prices keep climbing.
Sources: Goldman Sachs U.S. data-center power outlook; CNBC/CNN reporting on AI & grid prices; Monitoring Analytics (PJM); BloombergNEF Electric Vehicle Outlook 2026; U.S. EIA short-term energy outlook. Figures are projections and may change.