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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

California Utilities Told to Shed Load Under 'Stage 2 Emergency'

LCG, Dec. 5, 2000--California's investor-owned utilities were directed yesterday afternoon to curtail power deliveries to customers with interruptible contracts as the state's reserves of electricity fell below 5 percent, triggering a "Stage 2 Emergency."

At the same time, the utilities and the California Independent System Operator called on all customers to immediately reduce electricity consumption.

Pam Bass, Southern California Edison Co. senior vice president for customer service, said late yesterday afternoon "If power does not decrease soon, it will be necessary to begin shutting off power for blocks of customers. Everyone needs to cut their use of power now to avoid forced outages."

Pacific Gas & Electric Co. said part of the problem was caused by a transmission outage in the southern part of its service territory, near Bakersfield. When some wires went out, a power plant shut down to protect itself.

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