What does energy look like this year? Trends to look for in 2026

By EPN Staff 

Following a seismic shift in energy policy during the first year of the Trump Administration's second term, some trends are developing related to affordability, reliability and the cost of carbon reduction mandates.

Here are trends to watch in the coming year.

Expect next-generation nuclear power to provide more energy in 2026 and beyond 

While the U.S. has the highest number of commercially operating nuclear plants, most of them were constructed between 1970 and 1990. This carbon-free source of power, however, is getting a fresh boost. 

After taking office, President Trump issued four executive orders to modernize federal nuclear regulations, expedite testing, bolster the nuclear workforce and increase domestic nuclear fuel production with the intention of vastly expanding capacity. He has encouraged the building of traditional nuclear reactors, the refurbishment of older reactors, the creation of Small Modular Reactors (SMRs), and uranium production.  

SMRs are smaller and less costly to construct than traditional nuclear reactors, and can be prefabricated, transported and assembled on-site. While only China and Russia have operational SMRs, several countries, including the U.S. are working toward that goal. 

In addition, several states are converting retired coal plants into carbon-free nuclear plants. 

U.S. reliance on imported uranium remains an obstacle to the industry’s expansion, especially after a congressionally-mandated ban on Russian uranium was enacted. However, several Western states are expanding mines and processing. 

Expect tech companies and utilities to cooperate to generate power solutions. 

Advances in Artificial Intelligence (AI) have the potential to bring economic, scientific, medical and other benefits, but not without costs. There are now 4,303 data centers in the U.S. according to one data source. 

AI’s ever-increasing demand for power is straining power grids. S&P Global found U.S. data centers used 22% more power in 2025 than in 2024, and demand is expected to double by 2030. The drain by tech centers on energy, land and water has driven some communities to push back and oppose building new ones.  

To increase supply, tech companies are working with power companies and state governments to develop new power sources. For example, Amazon, Google, and Oracle have partnered with power companies to develop next-generation small modular nuclear reactors (SMRs) to supply reliable power. Some companies are also working to reduce their energy consumption. Power companies are considering charging data centers higher rates.

The need for more power generation isn’t the only issue. The slow pace of approval for new transmission lines, thanks to outdated regulations, will remain an obstacle absent reform, as opined by the Cato Institute.

Expect solar and geothermal power production to expand, in wind power to slow  

In 2025, wind power experienced several setbacks, including the loss of federal subsidies, restrictions on foreign-made parts and limits on permits and leasing on federal land and sea beds, which will slow the growth of the energy sector for years to come, Reuters predicts.

Although the Biden Administration encouraged wind energy through subsidies, loans and easy federal permitting, the new Trump Administration has been critical of this renewable energy source. Weather-dependent wind power is intermittent, takes considerable land and impacts natural vistas and wildlife, the administration has said. Moreover, offshore wind operations can cause significant electromagnetic interference to nearby radar systems.

Congress showed similar skepticism of wind’s preferential treatment under Biden; lawmakers phased out wind energy tax credits over the next two years in the One Big Beautiful Bill Act. 

In contrast to wind, domestic manufacturing of state-of-the-art solar power is expected to grow during the Trump Administration.  Next-generation geothermal also shows great promise.