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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

Florida Power 530 Megawatt Plant Approved

LCG, Dec. 22, 2000--Florida Power Corp. said yesterday the Florida Public Service Commission has unanimously approved its request for permission to build a second 530 megawatt natural gas-fueled, combined-cycle power plant at the company's Hines Energy Complex in Polk County, east of Tampa.

The company said the new unit, scheduled to be in service by the end of 2003, will be a sister to the already operating Hines Unit 1 which began operations last year. The new Hines Unit 2 will be built by Siemens-Westinghouse, Florida Power said.

"Building Hines 2 is just one of the many ways Florida Power will meet its commitment to customersto provide competitively priced, reliable energy as the region continues to grow," said Florida PowerPresident William Habermeyer. "This new power plant ensures that we will be able to meet the growing energy needs of our customers."

There remains a regulatory hurdle for the new plant which requires Supplemental Site Certification from the Florida Department of Environmental Protection. The company filed for the certificate this last July and expects approval before next summer.

In California, that would take two or three years.

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