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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

Lease Extension with Navajo Nation for Four Corners Power Plant

LCG, March 10, 2011--The President of the Navajo Nation on Monday executed a 25-year lease extension with Arizona Public Service Co. (APS) for the Four Corners Power Plant, a 2,060-MW, coal-fired power plant located near Farmington, New Mexico. The existing lease expires in July 2016, and the extension will enable operations into 2041.

Four Corners Power Plant is co-owned by a number of energy companies, and APS is the plant operator. APS plans to purchase Southern California Edison's stake in the newer units 4 and 5 and then to install SCRs on these two units. APS would then retire the older, less efficient units, rather than investing in new SCRs. The total plant capacity would be reduced to 1,500 MW.

There remain a number of hurdles for APS to clear, including: negotiating a coal supply contract with BHP Billiton and receiving regulatory approval from the Arizona Corporation Commission (ACC), the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC).

The President of the Navajo Nation stated, "My priority is to protect over 700 Navajo people employed at both the Four Corners Power Plant and BHP Billiton, including their families who rely on a steady income....This is a step in the right direction, and it's a business decision we did not take lightly."







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