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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

Florida PSC Approves New Nuclear Station Proposed by Progress

LCG, July 16, 2008--The Florida Public Service Commission (PSC) yesterday approved a proposal by Progress Energy Florida (Progress) for a determination of need to build two, 1,100-MW nuclear reactors at a greenfield site in Levy County, Florida. The first reactor is scheduled to be operational in 2016, and the second reactor in the following year. Progress submitted the petition to the PSC in March.

The new units, together with increased demand-side management (DSM) programs and renewable energy power purchase agreements, are forecast to meet the power supply needs of Progress through 2023 without increasing greenhouse gas emissions.

Progress plans to install two Westinghouse AP1000 reactors. In April, Progress announced that it had executed a letter of intent with Westinghouse Electric and The Shaw Group Inc. to purchase long-lead materials for the new nuclear reactors that are to be installed.

Progress is not the only utility planning to build nuclear reactors in Florida. In March, the PSC approved a petition by Florida Power and Light (FPL) for a determination of need to build two more nuclear reactors at its Turkey Point facility south of Miami. These proposed units are scheduled to commence operations in 2018 and 2020.
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