Electricity demand in the United States will increase 2% annually and 50% by 2050, according to a new study conducted by PA Consulting and released by the National Electrical Manufacturers Association.
“Driven by record growth in data centers and e-mobility, the study highlights innovative technology and policy solutions to maintain a reliable and affordable energy system through this new age of demand growth,” NEMA said.
The study, “A Reliable Grid for an Electric Future,” predicts that growth in electricity demand in the United States will be driven by a 300% rise in energy consumption by data centers and a 9,000% increase in energy consumption required for e-mobility and charging, with overall electricity projected to grow from 21% of final energy use to 32% by 2050.
Additionally, consumption changes will vary by U.S. region and will vary across markets over time, driven primarily by data centers in the next decade and EVs in the longer term.
The Mid-Atlantic and Texas will see the largest data center electricity demand growth through 2035, and the Northeast and West will experience the largest electricity demand growth from EVs between 2035 through 2050.
The study identifies near-term and emerging technology solutions to make the grid more efficient to meet this demand growth, including transmitting more with existing infrastructure, optimizing data center performance, enhancing grid stability through storage, and creating ways to manage peak load from EV charging. It also outlines key policy frameworks to meet coming demand in an all-of-the-above energy system, such as advancing comprehensive permitting reform, securing tax certainty, bolstering our manufacturing workforce, and alleviating critical supply chain bottlenecks.
NEMA represents over 300 electrical equipment and medical imaging manufacturers.
