The U.S. Energy Information Administration (EIA) forecasts slower growth in U.S. electricity generation in 2027 as utilities pursue major data-center deals, putting project approvals and grid demand in focus.
The agency projects generation will rise 2.7% from 2025 to almost 4,390 billion kilowatt-hours in 2026, then grow 1.2% in 2027. EIA expects commercial and industrial demand to keep increasing, while milder summer weather restrains residential use. The figures cover total U.S. generation, rather than data-center consumption alone.
CNBC reported that none of the utility CEOs Brian Sullivan interviewed at the Edison Electric Institute's Nov. 8-10 financial conference expected their electricity-growth outlook to slow. CNBC also reported that Barclays analyst Nicholas Campanella favors NiSource and Xcel Energy. The executive comments concern company outlooks, while EIA's projection measures national generation growth.
NiSource said its Northern Indiana Public Service Company reached a data-center agreement with Microsoft in October. The capacity commitment begins in 2028 and reaches 788 megawatts in 2031. Its initial 20-year term starts when the facility is first energized. NiSource plans to submit the agreement to the Indiana Utility Regulatory Commission. The filing also describes an existing system charge intended to return savings to existing electric customers.
Xcel Energy's proposed service agreement would supply Google's data center in Pine Island, Minnesota. Google would pay all costs for its new service. If regulators approve the agreement, Xcel expects about $1.1 billion in benefits for NSP-Minnesota customers. In April, Xcel asked the Minnesota Public Utilities Commission to approve the agreement and a proposed Clean Energy Accelerator Charge for 1,900 megawatts of clean-energy resources. The company expects a decision in early 2027.
Xcel reported that weather-normalized retail electricity sales rose 3.0% year over year in the third quarter of 2026. Its filing does not specify how much, if any, of that increase came from data centers.
Texas offers another measure of the proposed buildout. The Electric Reliability Council of Texas (ERCOT) said that, as of Nov. 5, it had received responses from 433 of 465 loads, representing about 177 gigawatts in requested grid connections. The preliminary tally may change and does not establish which projects will be built or how much electricity they will use. ERCOT has targeted Dec. 10 for its final report.
