One Pager: US National Power Demand Study

The U.S. is facing a historic opportunity: electricity demand is projected to surge 35-50% by 2040, driven by domestic manufacturing growth, AI data centers, and transportation electrification.

A landmark study—conducted by S&P Global Commodity Insights and commissioned by ACP with the support of American Petroleum Institute, Alliance to Save Energy, Clean Energy Buyers Association, Nuclear Energy Institute, the U.S. Chamber of Commerce, and the National Electrical Manufacturers Association—reveals how America’s domestic energy resources must be mobilized to meet this challenge.

Discover the key takeaways from the report by downloading this one pager.

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Energy demand is surging due to economic growth, technological advancements, and industrial expansion, creating new opportunities for U.S. businesses and industries to thrive.

• U.S. energy demand is projected to grow 35-50% by 2040.
• The next decade will demand more new electricity than any ten-year period in the nation’s history.
• Demand growth will be driven by a surge in data center construction, new manufacturing activity, and the electrification of transportation and heating.

For the next five years, there is a risk of demand growth surging past supply growth.

• Through 2030, markets across the country risk demand growth outpacing new supply.
• While datacenters and manufacturing facilities typically take two to three years to construct, new power generation can take five years or more to come online.
• This creates an urgent need for faster policy action on permitting and interconnection of resources to the grid.
• Failure to meet this increased demand could have dire consequences, such as:
  • Stifling economic growth
  • Hampering technological innovation
  • Raising energy costs for consumers

Surging demand across America must be met by increased capacity.

• Initial demand growth comes from industrial sector, primarily data centers and manufacturing activity. Growth through the early 2030s is dominated by these industries.
• Longer-term electrification of transportation and heating sustain demand growth well into next decade.
• Without new power resources, the grid will face reliability challenges.
• Will require targeted infrastructure investment and deployment of new capacity starting in eastern states and Texas and spreading across the country.

Solution: An all-of-the-above strategy that utilizes all affordable and reliable energy sources.

America has the technologies and solutions needed; now we must focus on unlocking rapid deployment. American energy dominance depends on diversifying our supply, unleashing innovation, and strengthening infrastructure.

Disclaimer: The Following Study from S&P Global Commodity Insights was commissioned by The American Clean Power Association (ACP), with the support of its partners: the American Petroleum Institute, Alliance to Save Energy, Clean Energy Buyers Association, Nuclear Energy Institute, the U.S. Chamber of Commerce, and the National Electrical Manufacturers Association.