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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

Los Angeles to Install Two More Fuel Cell Plants

LCG, Dec. 6, 2000--The nation's largest municipal utility said yesterday it had contracted with Fuel Cell Energy Inc. for installation in the Los Angeles area of two additional 250 kilowatt power plants at a cost of $2.45 million.

The Los Angeles Department of Water and Power said a previously-ordered fuel cell is to be installed next spring in the utility's headquarters. The first of the two additional units will be delivered in the autumn of next year and the second about three months later.

The LADWP said it will fund the new project under its public benefits program authorized by California's utility deregulation act of 1996. The units are expected to demonstrate their ease of siting and the operational benefits of distributed power.

Mahmud Chaudhry, LADWP's assistant general manager for distribution, said "These fuel cell power plants will expand the important role of fuel cell power in our distributed generation program. This new program is designed to improve our quality of service by locating small and clean electric generators near our customers' facilities."

Fuel cells produce electricity through an electro-chemical process, converting fuel -- most often hydrogen-rich natural gas -- to power with negligible effect on the environment.

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