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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

Supreme Court Rules EPA Can Overrule States

LCG, Jan. 21, 2004--A dispute before the Supreme Court over construction of a diesel power plant that had been approved by the state of Alaska, but that was blocked by the Environmental Protection Agency, was decided in favor of the federal agency as part of its enforcement of the Clean Air Act.

The Ninth U.S. Circuit Court of Appeals had previously ruled that the decision of the EPA to prevent the Teck Cominco mining company from adding a new diesel generator at the Red Dog Mine was within its "ultimate authority" in such regulatory actions governing emissions. Writing for the majority, Justice Ruth Bader Ginsburg said that the agency holds "supervisory authority over the reasonableness of state permitting."

The narrow majority (the decision was 5-4) found that the EPA had not issued a ruling beyond what the scope of the law covers. Justice Anthony Kennedy, in the dissenting opinion, wrote that he believed the majority's ruling was in conflict with the Clean Air Act, administrative law and "principles that preserve the integrity of states in our federal system."
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