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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

Construction Expected for Southern New Mexico Merchant Power Plant

LCG, Jan. 10, 2002--With the issuance of an air quality permit anticipated later this month, construction should commence on an 80-megawatt, natural gas-fired power plant in Lorsdburg, New Mexico.

PNM Resources' subsidiary, Public Service Company of New Mexico reached an agreement with Lordsburg's city council that $60 million worth of industrial revenue bonds will be issued to aid in the financing.

The Lordsburg facility should begin operations in July of this year, when it will sell its output into the wholesale power market. The other, most recent new plant introduced by PNM in November, 2001, is a 135-megawatt plant near Las Cruces, New Mexico, which is now under construction.

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