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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

PG&E Gets Green Light for Big Arizona Plant

LCG, Aug. 16, 2000--PG&E Corp. said yesterday it had received unanimous approval from the Maricopa County (Ariz.) Board of Supervisors for a special use permit for its Harquahala Generating Project west of Phoenix.

The special use permit allows PG&E Corp. to build and operate the 1,040 megawatt facility which, the company says, will help alleviate electricity shortages in the western U.S. "We're in an excellent position to begin construction before year-end," said Thomas B. King, chief operating officer of the western region of PG&E Corp.s National Energy Group. He said the plant is scheduled to begin commercial operation in 2003.

The plant still requires approval from the U.S. Bureau of Land Management, a Maricopa County air quality permit and a water quality permit.

PG& Corp. said the plant will use a zero liquid discharge system to minimize water consumption and the creation of wastewater. This system treats and recycles the water more than 300 times. It will be a modern, natural gas-fired combined-cycle generating station, the company said.

During the county hearings, several residents from Harquahala Valley testified in support of the project, including landowners and community leaders. Randy Long, Harquahala Valley Fire Chief, told the supervisors "I've visited a similar plant in Oregon, twice, and I was impressed with its operation, cleanliness and concern for safety."

The Harquahala Valley ought to welcome the project. The plant will generate between $8 million and $10 million in annual property taxes and there will be about 350 construction workers spending their money locally while it is being built.

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