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What’s Driving America’s Growing Electricity Demand?

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September 12, 2025

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Julia Wendling

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  • Alan Kennedy

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  • Athul Alexander
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The following content is sponsored by Global X U.S.

What’s Driving America’s Growing Electricity Demand?

Key Takeaways

  • U.S. power demand will jump from 3,900 billion kWh in 2024 to 5,800 billion kWh in 2050.
  • By 2050, the commercial sector will demand the most electricity in any industry–nearly 2,300 billion kWh.
  • The commercial sector will also see the most growth in terms of electricity demand, adding over 850 billion kWh to its electricity demand by 2050.

The U.S. Energy Information Administration (EIA) believes that by 2050, U.S. power demand will surge from 3,900 billion kWh in 2024 to 5,800 billion kWh. This would be a 46% boost.

But just what is driving this incredible demand for electricity?

For this graphic, the second in the Electrification Series, Visual Capitalist has partnered with Global X ETFs to discover why the U.S. demand for electricity will grow by nearly 50% by 2050.

Powering Growth

As the electric vehicle (EV) charging infrastructure expands along with the increased electricity demand from data centers and artificial intelligence, the overall demand for electricity in the U.S. will grow dramatically.

Below is a table that uses data from the EIA to compare U.S. electricity demand in 2024 to that in 2050.

Year Residential
(bil. kWh)
Commercial
(bil. kWh)
Industrial
(bil. kWh)
Transportation
(bil. kWh)
2024 1507.0 1397.5 1026.4 6.8
2025P 1488.9 1421.4 1062.7 7.2
2026P 1510.2 1413.8 1071.4 7.4
2027P 1537.1 1432.8 1075.6 7.5
2028P 1560.0 1450.0 1078.1 7.7
2029P 1576.1 1478.6 1084.5 7.8
2030P 1590.1 1502.9 1096.7 7.9
2031P 1601.9 1529.6 1111.3 8.0
2032P 1618.3 1564.1 1134.6 8.1
2033P 1636.8 1598.7 1158.9 8.1
2034P 1658.2 1636.7 1190.9 8.2
2035P 1684.0 1677.0 1224.3 8.2
2036P 1713.6 1719.8 1255.3 8.3
2037P 1745.4 1762.4 1279.0 8.3
2038P 1777.4 1805.2 1299.9 8.4
2039P 1809.9 1848.7 1320.0 8.5
2040P 1840.1 1889.8 1339.3 8.5
2041P 1867.8 1929.4 1356.5 8.6
2042P 1893.2 1966.7 1372.7 8.6
2043P 1916.5 2002.4 1387.3 8.7
2044P 1937.6 2037.2 1398.5 8.7
2045P 1957.5 2072.0 1406.2 8.7
2046P 1975.6 2105.6 1413.6 8.7
2047P 1993.2 2140.5 1425.2 8.8
2048P 2010.9 2176.4 1439.2 8.8
2049P 2029.4 2214.1 1453.0 8.9
2050P 2049.2 2254.0 1467.7 9.0

By 2050, America’s commercial sector will demand the most electricity of any industry—nearly 2,300 billion kWh. It is also expected to see the most growth in terms of its electricity demand.

The commercial sector will add over 850 billion kWh to its electricity demand by 2050.

Investing in the Demand for Energy

America’s future is truly electric. Between 2024 and 2050, the overall demand for electricity in the U.S. will rise by nearly 50%. Increased energy use in the residential and commercial sectors will drive this trend.

Do you want to learn more about electricity demand and electrification?

The third and final part of the Electrification Series focuses on the U.S. data center market. See how much of the nation’s energy demand data centers will consume.

Learn more about the Global X Electrification ETF (ZAP).

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