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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

Mitsubishi Subsidiary Seeks to Build Nevada Plant

LCG, Mar. 4, 2002--Diamond Generating, a subsidiary of Mitsubishi, the Japanese conglomerate, hopes to build a gas-fired generating plant near Goodsprings, Nevada, starting in early 2003.

While many US-based power developers have scaled back the number of projects they are actively pursuing due to a drop in power prices and lender concerns over some power producers' high levels of debt, Bill Davis, director of development of Diamond Generating, said, "there is still an increase in electric load requirements (in the western United States)." The plant would be named Ivanpah Energy Center, and would have a capacity of 500 megawatts.

The plant, which would be dry-cooled, would utilize 30 to 50 acre feet of water for cooling annually, from partially treated gray water generated by the Southern Desert Correctional Center in Jean. A typical dry-cooled plant requires 250 to 300 acre feet. The land on which Ivanpah would be built would be leased from the Bureau of Land Management.

A series of public meetings are scheduled concerning the plant. If the plant receives all required approvals, Diamond hopes to start operations by March 2005.
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