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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

CMS On-line With Two Units at Abu Dhabi Desalter

LCG, Aug. 1, 2000--CMS Generation Co., a unit of CMS Energy Corp. of Dearborn, Mich., said yesterday it has begun commercial operation of two gas-fired units totaling 370 megawatts at the Al Taweelah A2 power and desalination facility, currently under construction in the Emirate of Abu Dhabi.

Located on the coast of the Arabian Gulf approximately 65 kilometers northeast of Abu Dhabi city, the project, when completed, will consist of a 710 megawatt, natural gas-fueled combined-cycle powerplant and water desalination facility capable of producing 50 million imperial gallons of water per day.

Power and water from Al Taweelah A2 will be sold to the Abu Dhabi Water and Electricity Corp. under a 20 year power and water purchase agreement. CMS is managing engineering, procurement, construction and operation of the plant under a 20 year agreement.

CMS owns 40 percent of the project and the Abu Dhabi Water and Electricity Authority owns the remaining 60 percent.

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