The sun sets behind a pair of wind turbines in Newburyport, Massachusetts, U.S., August 25, 2024.
U.S. power consumption is projected to surge to record highs in 2025 and 2026, rising nearly 3% from 2024's all-time high. This surge is driven by the increasing demand for energy by artificial intelligence (AI) data centers. Despite this growth, wind energy was already experiencing a slowdown before President Trump's directive to pause new federal wind leasing and permitting. The order, which called wind turbines "large, ugly structures harmful to wildlife," laid a significant blow to the sector.
"We're not going to do the wind thing. Big, ugly wind mills. They ruin your neighborhood," President Trump famously said, encapsulating the public's perception of wind turbines. His administration's policy of halting new wind projects further impacted the market. The U.S. wind market was at its smallest in a decade in 2023, with installations totaling 5.2 GW. This marked a stark decline from 7 GW in 2022, a year marked by the expiration and subsequent extension of a federal tax credit for clean energy.
Stephen Maldonado, a research analyst at Wood Mackenzie, stated that while the market may begin to rebound, ongoing uncertainties about future U.S. wind policies and economic pressures will likely constrain growth in the short term. Despite sustained power demand, the sector faces a challenging environment, with plans to import more fossil fuels and export more renewable energy to meet growing needs. The interplay between exports, imports, and consumption remains a critical factor in shaping the sector's future.
