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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

Connecticut to Install 1.2 Megawatt Fuel Cell System

LCG, March 28, 2001The largest fuel cell electric generation system built to date will be installed at the Connecticut Juvenile Training School in Middletown, Conn., a subsidiary of Northeast Utilities said yesterday.

Select Energy Group, Northeast's unregulated generation unit, said it has been awarded a contract to install sic 200 kilowatt fuel cells at the reform school. The fuel cells will be manufactured by International Fuel Cells, a subsidiary of Hartford-based United Technologies Co.

Select Energy will operate and maintain the $18 million system under a 20-year contract that has a 10-year renewal option. The arrangement is expected to produce about $2 million a year in revenues, the company said. The installation is expected to be completed in September.

The fuel cell system will not only provide 1.2 megawatts of power for the school, it will provide 9 million British thermal units per hour of hot water and 680 tons of chilled water. In all, it will supply all of the electric, heating and cooling needs for 227,000 square feet of buildings, including residences and a greenhouse.

Select Energy will also provide natural gas to operate the fuel cells and to fuel backup combustion generators. Other units of Northeast utilities will service the fuel cells, boilers and chiller systems.

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