Industry News

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 (NEMA). 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.

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.

“America’s electrical system will face dramatic changes over the next 25 years,” said Debra Phillips, President and CEO, NEMA. “As electricity demand is set to rise for the first time in decades, we need an all-above-approach that focuses on investing in innovative technologies and prioritizing policy and regulatory certainty that will help us create the reliable and affordable energy system of the future. This study is an important step forward in achieving that, and offers a blueprint to improve grid performance, enhance reliability, and meet our shared electrification goals.” 

“In today’s rapidly evolving energy landscape, the demands on the power grid are greater than ever. As we face unprecedented growth in energy consumption and challenges posed by aging equipment, shrinking reserve margins, and increasingly severe weather events, utility operators will require cutting-edge solutions that enhance the resilience and reliability of our grid to ensure a sustainable and dependable energy future,” said Michael Plaster, Executive Vice President, Lead Business Manager, Electrification Business, U.S., ABB Inc.

“The distribution grid is the foundation of our energy future, and its resilience is key to meeting growing electricity demand,” said Anders Sjoelin, President and CEO, S&C Electric Company. “At S&C, we drive intelligence and action across the grid—empowering customers with innovative solutions that not only improve reliability today but also prepare the grid for tomorrow’s challenges. As this study highlights, we must act decisively, and the time to modernize and strengthen the reliability and resilience of our grid infrastructure is now.”

“The promise of an all-electric future in North America is here. We are going through tremendous change, moving from an oil, coal and gas-based economy to an electrified one. This promise is real – it is exciting, and it is attainable,” said Rich Stinson, President and CEO, Southwire. “These changes are good; however, while there is much excitement, there are also significant headwinds. It will take all of us – working with our industry partners, suppliers, customers, government entities, business leaders and others – to address the challenges and opportunities ahead.”

“Electrification and digitalization are transforming our world,” said Beth Wozniak, nVent CEO and NEMA Board Chair. “The demand on the grid driven by AI, record growth in data centers and e-mobility requires more efficient, resilient electrical solutions. As industry leaders we’ll partner with national, state and local officials to ensure our grid is built for global competitiveness now and into the future.”

To view the executive summary, click here. To view the grid study presentation, click here.