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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

El Paso Pipeline to Benefit California

LCG, May 31, 2002--The Federal Energy Regulatory Commission decided El Paso Corp. should alter its gas pipeline allotment practices to benefit California.

According to FERC, El Paso must renegotiate contracts, eliminating preferences that were given to Arizona and New Mexico shippers. The company welcomed FERC's order, saying it will not have any "adverse economic impact" on the company.

Prior to the decision, Southwest shippers could take as much gas as they required, and California, which saw rapid population growth, had trouble getting the gas it wrote contracts for.

All shippers will receive equal consideration by November, and El Paso has plans to build an addition 550 million cubic feet of pipeline into California by the end of this year.

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