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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

Science Panel Says Hurdle of Hydrogen Infrastructure is Overlooked

LCG, Feb. 5, 2004--The National Academy of Sciences has found that reduction of carbon dioxide emissions based on new hydrogen-fueled vehicles would require much more research and planning for associated infrastructure, and would only be realized after a "lengthy transition period."

A report issued by the academy indicated that scientific problems remain, and that a plan by the Bush administration to jump-start hydrogen-based transportation is currently "unrealistically aggressive". The panel that wrote the report was headed by Michael P. Ramage, formerly of ExxonMobil.

President Bush has said that he will commit $1.7 billion towards hydrogen research during the next five years. Among the areas that the scientific panel cited as needing more "exploratory" research were hydrogen storage, delivery methods, materials for pipelines and the key reaction, electrolysis, that would release energy for motive power.

Energy Secretary Spencer Abraham said that an earlier report by the National Academy of Sciences had prompted the Department of Energy to increase funds for exploratory research, and that the new report supported President Bush's ultimate goal for hydrogen vehicles.
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