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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

Power Plant Emission Control Could Be Made Voluntary

LCG, March 19, 2002-In documents submitted to the White House Office of Management and Budget, the Environmental Protection Agency (EPA) proposed allowing utilities to voluntarily cut emissions at coal-fired plants.

In a reverse of the Clinton administration's policy of legal action against slow-acting plants, the EPA would not pursue utilities that do not invest in expensive equipment designed to limit emissions.

Instead, the EPA intends to encourage utilities to freely initiate the prevention of excessive air pollution. According to some sources, including the Washington Post, the administration may seek to add more demanding legislation.

The plan also included a "clean-unit exemption," which would give a 15-year break to those plants that have made improvements over the past 15 years.

Many utilities found the old rules unfair and said compliance would require billions of dollars worth of new investment. Environmental groups charge that the EPA's plan is part of a greater trend to minimize protection for land, air, and water, and would exacerbate the negative health affects related to emissions.

The Bush administration says nothing has been finalized yet.

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