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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

Peruvian Privatization Woes Lead to Director's Resignation

LCG, July 22, 2002-Peru's executive director of privatization resigned as the sale of government electricity assets has been repeatedly delayed.

Ricardo Vega Llona, who resigned once before in late June, resigned for good. Alberto Pasco-Font has taken his position as executive director.

The Peruvian government postponed the sale of state-owned energy companies Egasa and Egesur several times because of public outcry and fears on the part of the purchasers. Belgian energy company Tractabel won the bidding on Egasa and Egesur, but the final sale was postponed in the midst of widespread riots in southern areas of Peru.

Peru decided to sell government assets this year in order to raise $700 million, but Vega Llona contends that the privatization will not yield the expected cash.

Now government officials say that Egasa and Egesur, along with some other assets, will not be sold until after elections in November.

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