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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

Williams Plans Big Expansion of Western Pipeline

LCG, March 23, 2001The Williams Cos. said yesterday that it plans to add 900 million cubic feet per day of transmission capacity on a 926-mile natural gas pipeline that moves gas from Wyoming to markets in Utah, Nevada and California.

Williams' Kern River Transmission pipeline currently has a capacity of about 700 million cubic feet per day. The additional capacity is scheduled to be available by May 2003.

Last fall, Williams held an "open season" for the project that is, it sought expressions of interest in purchasing capacity on the proposed line.

"We knew that demand was strong," said Kirk Morgan, Kern River director for business development. "However, the response was even greater than we anticipated. There is tremendous demand for natural gas to fuel new electric generation facilities in California and Nevada. This expansion provides shippers with an economically attractive opportunity to secure additional firm year-round transportation."

Williams said it would file an application for the $1 billion project with the Federal Energy Regulatory Commission in June. The company must also negotiate rights of way and secure environmental and regulatory approvals in the states the pipeline crosses.

"Shippers are seeking more access to natural gas from Rocky Mountain basins, where producersare aggressively stepping up production," Morgan said. "Kern River is in the right place at the right time to help bring that production to market."

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