Factors driving the rising demand for electricty
Across the United States, the demand for power is climbing at one of the fastest rates in decades. As the economy becomes more reliant on electricity and data centers continue to sprout up in many parts of the country, electric cooperatives are preparing to meet the challenges that skyrocketing demand brings.
The North American Reliability Corporation — the watchdog for the U.S. electric grid — recently released the 2025-2026 winter reliability assessment, which echoed other recent reports, including longer-term outlooks that expect sufficient energy resources during normal conditions but potential supply shortfalls and outages under more intense weather conditions.
Extreme weather coupled with additional factors that are driving increased demand creates challenges for electric utilities, including cooperatives, in their mission to provide reliable power around the clock.
Several key factors are driving increased demand, including economic growth, expanded manufacturing, data center development, and increased electrification. Together, these trends are reshaping how much electricity we consume and how quickly utilities like Highline Electric and our wholesale power provider, Tri-State Generation and Transmission, must adapt to meet future needs.
One of the biggest drivers of rising demand is increased electrification due to state regulations. More homes and businesses are transitioning to electricity for home heating, water heating, and transportation. Additionally, electric heat pumps are replacing traditional furnaces in many homes due to their efficiency. These transitions mean more energy use and pressure placed on our electric grid.
Data centers are another major contributor to rising demand. As artificial intelligence, cryptocurrency, and cloud computing technologies grow, the need for data processing and storage has skyrocketed. Data centers require huge amounts of power to operate servers and cooling systems 24/7. Tri-State has worked together with their members to proactively develop a tariff that will insulate our members from the cost impact of growth due to large loads like data centers.
Economic and manufacturing growth are also contributing to higher electricity use. As businesses expand and new industries take root, especially in rural and suburban areas, the demand for reliable, high-capacity power is increasing. The resurgence of domestic manufacturing has led to major facility construction.
Population growth and housing development are also contributing to rising demand in many regions, and everyday life is becoming more energy dependent, too. Smart appliances, connected devices, home offices, and entertainment systems are adding to overall consumption, even as efficiency improves.
Tri-State has developed programs in partnership with its members that allow Highline to participate and reduce the economic impact of this load growth. These programs include:
• Bring Your Own Resource
• Highline is participating with Tri-State in the development of new generation resources that will be economically beneficial to our membership.
• Member Demand Response Program
• Highline is partnering with Tri-State to maximize the benefit of our irrigation load control program.
• Highline is working to deploy utility scale batteries across our system to manage our demand and lower our wholesale power costs.
Electricity powers nearly every aspect of today’s economy, and its role will only grow stronger. As electrification accelerates, long-term planning becomes more important than ever.
Highline is working together with our power supplier to meet the growing demand for electricity. Through innovation, investment, and collaboration, we are preparing for a more reliable and resilient energy future.
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Dennis Herman is the General Manager of Highline Electric Association. HEA’s mission is to provide our members with reliable, high-quality electricity and other needed services, which will improve their economic and social well-being and provide significant long-range benefits for our communities, our state, and our nation.
