The exploding U.S. energy demand, particularly for electricity driven by data centers, electrification, and broader economic activity, makes a compelling case for expanding insulation to manage consumption. The release this week of the Business Council for Sustainable Energy’s and Bloomberg NEF’s 2026 Sustainable Energy in America Factbook provides comprehensive year-over-year details and data-driven trends that only bolster the case for insulation to help manage the resulting impacts.

6 Topline Trends in the Factbook

Among the top findings in this year’s Factbook are:

1. Data Center construction is driving energy demand. Data center demand has quadrupled in the past 10 years, and in 2025, electricity demand rose considerably for the first time in decades.
2. Wholesale power prices also increased sharply, while retail prices inched up slightly. The natural gas-reliant Northeast and Mid-Atlantic regions experienced higher gas prices, putting pressure on capacity and leading to grid constraints. Prices rose a whopping 62% year over year in New York and 60% in the New England Region. Despite this, retail prices nationwide increased just 2.3% year over year.
3. The diversity of sustainable energy solutions is helping meet demand. Deployment of energy efficiency, renewable energy, energy storage, natural gas, and sustainable transportation continued to grow, driving U.S. power generation to a 20-year high.
4. Unpredictable policy changes present challenges and opportunities for the energy sector. The growth in energy investment and deployment occurred despite uncertainty around federal policy changes. For example, federal permitting revocations and restrictions, especially affecting wind and solar projects, added further delays to already lengthy approval timelines.
5. Investment in technology, innovation, and manufacturing continued in the U.S. and abroad. U.S. investment in energy transition sectors, including renewables, electrified transport, decarbonization of industrial processes, and grids, among others, grew 3.5% year over year to a record $378 million. Globally, sustainable energy investment reached over $2.3 trillion in 2025.
6. Greenhouse gas emissions are rising. The booming energy demand led to a 1.7% increase in U.S. economy-wide greenhouse gas emissions in 2025. Despite this, U.S. greenhouse emissions are down 5.4% over the past decade. Emissions in 2025 were 14% below 2005 levels.

Insulation’s Role in Mitigating Challenges from Exploding Demand

Because energy demand is making it harder to balance supply and affordability, the case for leveraging insulation to address these challenges is compelling. By reducing how much energy buildings use, which is about 40% of national energy consumption, and lowering the demand for energy during peaks, better insulation can help businesses and consumers manage affordability concerns.

Insulation is by far the most cost-effective energy efficiency measure because it directly reduces energy waste. Better-insulated buildings reduce demand on HVAC equipment, reducing electricity and gas consumption while maintaining comfort. As greenhouse gas emissions rise, it’s especially important to leverage readily available, affordable technologies, such as insulation, to reduce them. The added benefit is that there are still green building standards and energy efficiency programs that can qualify buildings for incentives and rebates.

“As energy demand continues to grow and costs soar, the smartest investment we can make is reducing the energy we waste. Efficiency — starting with better insulation — remains a proven, scalable solution that benefits communities nationwide by reducing energy use and managing energy costs,” said NAIMA’s President and CEO Curt Rich.

Access the full 2026 Factbook in America here.