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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

Mexico to Cut Subsidies to Residential Power Users

LCG, Jan. 31, 2002--Subsidies to Mexico's residential users of electricity will be cut in order to make infrastructure maintenance and upgrades, two senior cabinet members announced this week.

The subsidies have increased from $1 billion in 1995 to $3.5 billion in 2001. Treasury Secretary Francisco Gil Diaz stated that without the cutback of $1 billion, the total would have continued to rise. The change will affect the roughly 30 percent of consumers who use more than 125 kilowatts per month.

Representatives of business have said that the utility should increase efficiency instead, and analysts speculated that inflation would increase.

Some consumers, such as Francisco Rodriguez, a civil engineer who is not currently working, said that the government should crack down on vendors and shantytown dwellers who illegally obtain electricity by siphoning it directly from the lines. A vendor said that although he does pay for electricity, his payments do not go the company.
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