US Energy Consumption Grows Due to Data Center Expansion, EIA Reports
The US is experiencing its highest energy consumption growth in 25 years, primarily due to the expansion of data centers, with record electricity demand noted since 2000. Forecasts indicate a 1% increase in electricity consumption for 2023 and a 3% rise by 2027, while natural gas production is expected to surpass 3 billion cubic meters per day by 2026. However, the decline in renewable energy projects, driven by tariffs on solar and wind components, could lead to the cancellation of up to 4,500 initiatives.
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The US is experiencing the highest energy consumption growth in 25 years, driven by data centers. The EIA recorded record electricity demand since 2000, with utilities committing 160 GW of new capacity by 2037.
Electricity consumption is forecasted to grow 1% in 2023 and 3% by 2027. The AIE expects natural gas production to exceed 3 billion cubic meters per day by 2026. Solar energy is projected to grow by 21% from 2026-2027, while coal generation is expected to decrease by 9% in 2026.
The US government is prioritizing gas and coal generation, with a $625 million fund created for coal plant modernization. However, demand for renewable energy is declining due to tariffs on solar and wind projects using Chinese components, potentially increasing project costs by 10-20% and leading to the cancellation of up to 4,500 clean energy projects.
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