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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

New Power Plant Proposal for Wisconsin

LCG, December 2, 2004--Midwest Power, LLC has expressed renewed interest in developing a 225-MW power plant near the town of Beloit, Wisconsin. Further details regarding the project are expected shortly, following a meeting by town supervisors to review the proposal.

The announcement follows the Dane County Circuit Court decision issued Monday that the Wisconsin Public Service Commission's (WPSC) approval of We Energies' Oak Creek project violated state statutes and that the WPSC must start the approval process over. On Tuesday the PSCW, which approved the Oak Creek project in November 2003, unanimously voted to appeal the court decision. PSCW General Counsel David Gilles stated, "The Commission is very concerned about the effect of construction delays on future electric reliability in Southeast Wisconsin and on overall costs of the project."

The Oak Creek project, estimated to cost $2.15 billion, includes two 615-MW, supercritical pulverized coal units and would be the largest coal plant in Wisconsin.

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