HOUSTON, TEXAS (Editors at Energy Analytics Institute, 10.Mar.2025) â According to a report released by S&P Global Commodity Insights, electricity demand in the US is projected to surge by an unprecedented amount over the coming decade.
This rapid growth, driven by a diverse set of factors, signals an extraordinary opportunity for the American economy and electricity sector: meeting this growing demand will require an all-of-the-above energy strategy featuring efficient, economic, reliable, and rapidly deployable energy resources, S&P Global said 10 Mar. 2025 in an official statement.
A study by the US National Power Demand Study describes a critical gap between the current energy supply and future needs. It predicts US electricity demand will surge by 35%-50% between 2024 and 2040.
âThis is primarily due to AI data centers and new manufacturing activity in the short-term whereas electric vehicles (EV), space-heating electrification, and broad economic growth underlie the long-term dynamics. This demand is growing faster than the supply of new energy solutions that could power it â data centers and manufacturing facilities, for example, take about three years to build versus development and construction times of typically five or more years for new power generation to come online, creating an urgent need for faster policy action on permitting and grid interconnection and an all-of-the-above energy strategy within the sector,â S&P Global said in the statement.
S&P Global also said that regional dynamics â such as population growth, data center development and manufacturing in Texas and zero emission vehicle mandates in Western states â will dictate how the problem is best addressed, as demand grows unevenly across regions in the near term.
The report describes how demand growth will initially be concentrated in the Eastern Interconnection and Texas, while later growth will be driven by the electrification of transportation and heating in population centers nationwide.
The report finds that an additional (net) 730-765 GW of renewables, 160-175 GW of storage, 60-100 GW of gas, and 10-25 GW of nuclear and geothermal will be needed by 2040 to maintain grid reliability, with 8% of the nationâs energy demand being met through expected energy efficiency savings over 2024 levels of savings.
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By Editors reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
