A new study released by the National Electrical Manufacturers Association (NEMA) and conducted by PA Consulting projects a 50% increase in electricity demand in the United States by 2050 — an average annual growth rate of 2%. The report, titled “A Reliable Grid for an Electric Future,” attributes this trend to rapid expansion in sectors such as data centers and electric mobility, and outlines potential strategies to ensure the power grid remains reliable and cost-effective as demand increases.
According to the study, data center energy consumption is expected to rise by 300%, while electricity demand for electric mobility, including vehicle charging infrastructure, could increase by up to 9,000% by 2050. As a result, electricity’s share of final energy use in the U.S. is forecasted to grow from 21% to 32%.
Regional impacts will vary, with the Mid-Atlantic and Texas projected to see the highest growth in data center electricity demand through 2035. From 2035 to 2050, the Northeast and West are expected to lead in electricity demand growth driven by electric vehicles.
The study identifies several emerging technology solutions aimed at improving grid efficiency and reliability, including optimizing existing transmission infrastructure, enhancing data center performance, expanding energy storage capabilities, and managing peak loads from EV charging. It also outlines policy considerations such as permitting reform, tax policy stability, workforce development, and supply chain improvements.
Industry leaders emphasized the importance of preparing for anticipated shifts in the energy landscape.
“Electricity demand is set to grow significantly over the next 25 years,” said Debra Phillips, President and CEO of NEMA. “This study provides a roadmap for maintaining reliability and affordability as the grid evolves to meet new demands.”
Michael Plaster, Executive Vice President at ABB Inc., noted, “Utility operators will need innovative tools to address challenges such as aging infrastructure and extreme weather while supporting increased energy consumption.”
Anders Sjoelin, CEO of S&C Electric Company, added, “A modernized, resilient distribution grid will be central to meeting future electricity needs.”
