Analysis
Energy Demand
Our position
After decades of flat to declining energy demand, the United States is now in the midst of a radical upswing. This is a good thing. Rising energy consumption is a feature of development, not a bug. Energy demand growth presents a real opportunity for new energy technologies, infrastructure buildout, and overall human progress. Meeting the growing energy demand will require a reformed permitting ecosystem and a diverse portfolio of technologies including baseload power generation, thus enabling cheaper, cleaner energy for decades into the future.
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Questions
Why is electricity demand increasing?
New manufacturing facilities, data centers, the electrification of transportation and buildings, and population and economic growth are all increasing demand for electricity.
Why are electricity prices going up?
Electricity prices are rising for many reasons, but growing demand does not have to mean higher prices. The bigger challenge is building enough affordable power and grid infrastructure to keep pace. Making it faster and cheaper to build abundant, reliable electricity is key to keeping costs down.
Are data centers and AI driving up electricity prices?
Not necessarily. Data centers and AI are increasing electricity demand, but higher demand does not have to mean higher prices. The challenge is expanding electricity supply and grid infrastructure fast enough—and ensuring large new customers pay their fair share of the costs.
Does the US have enough electricity?
Yes. Electricity supply is not fixed. The United States has abundant energy resources and technologies capable of meeting growing demand. The challenge is building power plants and grid infrastructure fast enough. Faster permitting and infrastructure development can unlock abundant, reliable electricity.