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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

LI-to-CT Cross-Sound Cable Shut Down by DOE

LCG, May 7, 2004--The high-voltage line that stretches across the Long Island Sound, connecting New York with Connecticut, will cease transmitting power, following a Department of Energy decision that a previously issued emergency order allowing flows was no longer justified.

The underwater cable began operations under contentious circumstances, following the power blackout that affected millions last August. According to the Connecticut Attorney General Richard Blumenthal prior its activation, the underwater cable had not been buried sufficiently deeply beneath the bottom of the Sound, and posed a hazard to marine life. The 330-megawatt cable was put in place by Cross-Sound Cable Co. LLC.

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