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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

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

Northeastern, Mid-Atlantic States to Begin Talks on Plant Emissions

LCG, July 25, 2003--Discussion on a possible cap-and-trade program for power plant emissions will begin between the states of New York, Connecticut, New Jersey, Vermont, New Hampshire, Delaware, Maine, Pennsylvania, Massachusetts, and Rhode Island, with an agreement envisioned by April 2005.

The talks were proposed by Gov. George Pataki, of New York. The responses from the states have varied, with some, such as New Jersey, looking at restricting multiple pollutants, rather than creating a market for credits for carbon dioxide alone, which is what is addressed by Pataki's proposal.

The director of the air and energy program of the Natural Resources Defense Council, Ashok Gupta, told the New York Times that the conservation organization is "hopeful that this will be the precursor to a national cap-and-trade program for carbon dioxide." Thus far, the Bush administration has not given support to a cap-and-trade proposal by Senators Joseph Lieberman, D-Conn., and John McCain, R-Ariz., but has asked industry to consider voluntary reductions of their emissions, in the belief that outright limits would cause economic harm. It has also asked for more research into the science of global warming. Aides to Gov. Pataki, a Republican, have said that the talks do not represent conflict with the administration's climate policy.

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