> ## Content Index > Fetch the complete content index at: https://www.benchmarkanalytics.com.au/llms.txt > Use this file to discover other available public pages before exploring further. # What's Happening with AI and Electricity Usage in the USA? - URL: https://www.benchmarkanalytics.com.au/whats-happening-with-ai-and-electricity-usage-in-the-usa/ - Published: 2026-10-19T20:00:00.000Z - Updated: 2026-10-19T20:00:00.000Z - Description: AI is transforming US electricity demand. Data centres could account for nearly 12% of national consumption by 2030, while rising wholesale prices and investment in electricity networks raise questions about who will pay for the boom. - Author: Nick Hossack - Tags: Artificial Intelligence, AI, Energy, Electricity Prices, US, Critical Infrastructure America's AI boom is no longer just a story about semiconductors and investment. It is becoming a major challenge for the electricity system, with important implications for household and business electricity bills. A new study released by Lawrence Berkeley National Laboratory in June 2026 estimates that US data centres consumed **192 terawatt-hours (TWh)** of electricity in 2024, representing 4.7% of national consumption. By 2030, that figure could reach **649 TWh, or 11.8% of America's electricity consumption**. The study's alternative scenarios range from 9.5% to 15.3%. These figures cover all data centres, not just AI. However, increasingly powerful AI processors and their cooling requirements are major contributors to the growth. ### What is happening to electricity prices? The US Energy Information Administration's October forecast expects national electricity consumption to reach 4,288 TWh in 2026 and 4,356 TWh in 2027, both records. The EIA forecasts average wholesale electricity prices of **$52 per megawatt-hour in 2026, up 11% on 2025**. The regional differences are striking. In PJM, the electricity market covering much of the eastern United States, wholesale prices are forecast to increase 41% this year. Average residential electricity prices nationally are expected to rise from 17.3 US cents per kilowatt-hour in 2025 to 18.2 cents in 2026. Not all these increases are attributable to AI. Weather, natural gas prices and electricity network costs are important influences. ### Who should pay? The problem is that data centres can be built faster than the additional power stations and transmission infrastructure required to supply them. In July, PJM's electricity capacity auction secured supply that was 6,831 megawatts below its future reliability requirement. This creates an important economic question: **should households and existing businesses contribute to the cost of infrastructure required by AI companies?** The answer will increasingly shape American energy policy. | BENCHMARK ANALYTICS \| US ECONOMY AI's Growing Demand for Electricity How much electricity will data centres consume, and what will it cost? | | | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------- | | 2024 ESTIMATED USAGE 192 TWh 4.7% of US electricity 2030 CENTRAL FORECAST 649 TWh 11.8% of US electricity | | | Data centre electricity consumption could more than triple between 2024 and 2030\. One terawatt-hour (TWh) equals one billion kilowatt-hours (kWh). Figures cover all data centres, including non-AI uses. | | | Data centres' share of US electricity use | | | 2024 — historical estimate 4.7% 2030 — central forecast 11.8% Bar scale: 0–15.3%. The 2030 forecast range is **9.5%–15.3%**, reflecting uncertainty about equipment deployment, processor power use and utilisation. | | | What is happening to electricity prices? | | | 2026 WHOLESALE FORECAST $52/MWh +11% from 2025 PJM WHOLESALE FORECAST +41% 2026 versus 2025 | | | Average residential electricity prices US cents per kilowatt-hour 2025 17.3c 2026 forecast 18.2c 2027 forecast 18.7c Wholesale and retail prices are different. Household bills also include network infrastructure and other costs. These increases cannot be attributed solely to AI. | | | THE ELECTRICITY NETWORK CHALLENGE 6,831 MW Shortfall against PJM's future reliability capacity requirement in its July 2026 auction for 2028–29\. This is a shortfall against a planning standard, not a reported electricity outage. | | | THE ECONOMIC QUESTION Who should pay for the additional power stations and electricity networks required by the AI boom? | | | **Sources:** Lawrence Berkeley National Laboratory, United States Data Center Energy Usage Report: 2025 Update (June 2026); EIA Short-Term Energy Outlook (6 October 2026); PJM 2028/29 Capacity Auction (14 July 2026). [Berkeley Lab report](https://seta.lbl.gov/publications/united-states-data-center-energy-2025?ref=benchmarkanalytics.com.au)\| [EIA forecast](https://www.eia.gov/outlooks/steo/report/elec%5Fcoal%5Frenew.php?ref=benchmarkanalytics.com.au)| [PJM announcement](https://insidelines.pjm.com/pjm-capacity-auction-procures-138318-mw-of-generation-resources-as-work-continues-to-address-growing-electricity-demand/?ref=benchmarkanalytics.com.au) Benchmark Analytics | 12 October 2026 |