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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

GE Generator Unit Scales Back Capacity

LCG, July 26, 2002--Based on its forecast of a decrease of 80% in orders for and production of gas turbines, GE Power Systems will reduce its workforce by 2,500 over the next nine months.

Power Systems' president and chief executive officer John Rice said, "We have always made it clear that, after several years of exceptional growth, our turbine business woud at some point return to more normal order levels, and it is."

Some manufacturing that had been based in Pensacola, Fla., will move to Schenectady. A type of wind turbine blade will be produced there for the Wind Energy business.

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