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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

Winston-Salem Plant on Drawing Board

LCG, July 2, 2002--CME North American Merchant Energy LLC last week announced plan to develop an 800-megawatt baseloaded, combined-cycle plant on the southern edge of Winston-Salem, N.C.

If air- and water-quality permits are granted, construction could begin near the end of 2003. Michael Casper, a site developer for CME, said "It is needed and with the shift from coal-fired to newer plants, it will benefit the area because there will be less emissions."

Construction would be expected to last from 18 to 24 months. The gas-fired plant would be sited within a 55-acre, industrial-zoned area.
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