2026 Energy Forecast: Renewable Energy Grows, Emissions Steady as AI Expands

By 2026, the U.S. energy sector is poised for major changes, with electricity prices climbing due to heightened demand from data centers and cryptocurrency mining operations. The U.S. Energy Information Administration (EIA)

to reach $51 per megawatt-hour in 2026, compared to $47/MWh in 2025. This increase is largely driven by the West South Central area, especially Texas, where is growing swiftly.

Renewable sources are projected to generate a record 26% of the nation’s electricity in 2026, with nuclear energy making up 18%,

overall. Despite this, carbon dioxide emissions from electricity generation are expected to remain relatively stable, metric tons from 4.9 billion in 2025. The EIA further highlights that natural gas will continue to supply 40% of the country’s electricity, surpassing both coal and nuclear .

Technology firms are ramping up infrastructure spending to address AI-related energy needs. Google revealed plans for a $40 billion data center expansion in Texas through 2027, while

in AI computing infrastructure . Meta’s facility in Beaver Dam, Wisconsin, is part of a larger initiative to secure “top-tier compute” for AI development, with but suggesting options such as leasing out surplus resources.

The swift expansion of AI infrastructure is driving advancements in cooling technology.

, a modular cooling solution built to manage high-density AI power loads, offering zero water usage efficiency (WUE) and leading power compute effectiveness (PCE). Likewise, at SC 2025, collaborating with AMD and to enhance energy efficiency for large-scale data centers.

Interest in geothermal energy is also on the rise.

with Triton Geothermal, supporting a $125 million digital token initiative for geothermal projects. At the same time, of a 310-MW natural gas asset portfolio in Ontario underscores the ongoing dependence on fossil fuels during the energy transition.

Natural gas providers are adjusting to evolving market conditions.

in Europe, aiming to blend gas with renewable sources. for Natural Gas Services Group to $39, citing robust third-quarter performance and positive 2026 projections.

The EIA’s November Short-Term Energy Outlook also

to $4.00/MMBtu in 2026, fueled by higher winter heating needs and expanding LNG exports. In contrast, oil prices are forecast to fall to $55 per barrel, daily.

Changes in regulations are also impacting the clean energy industry.

as the Trump administration reduces support for renewables, by 45%. Meanwhile, a 36% year-over-year profit increase, attributed to solar pump installations under India’s PM-KUSUM program.

As the U.S. seeks to balance the energy needs of AI with environmental objectives, the evolving mix of renewables, natural gas, and advanced cooling technologies will shape the industry’s direction in 2026.