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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

Atlantic Wind Connection Files Application to Support Offshore Grid for Wind Power

LCG, April 1, 2011--Atlantic Wind Connection (AWC) filed a right-of-way application yesterday with the Department of the Interior's Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) to support plans to construct an underwater electric transmission system designed to transmit up to 7,000 MW of power from offshore wind turbines to the transmission grid, with four planned connections ranging from near Norfolk, Virginia up to Delaware, plus interconnections in southern and northern New Jersey.

Trans-Elect (affiliated with the project) filed an application with the Federal Energy Regulatory Commission (FERC) for approval to construct system last December. The target schedule for the project is to receive regulatory approvals and project funding by 2013. Construction could then commence, with the first phase of construction completed in 2016 and the entire, 350-mile project completed by 2020. The estimated project cost is approximately $5 billion.

The project plans to use High Voltage Direct Current (HVDC) technology to create the off-shore, transmission backbone. The project is designed to be scalable so that it can be expanded to receive energy from additional off-shore wind projects.

The project investors are Good Energies, Google and Marubeni.
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