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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

Big First Quarter Gains in New Wind Turbine Capacity in U.S.

LCG, May 4, 2017--The American Wind Energy Association (AWEA) released on Tuesday its new U.S. Wind Industry First Quarter 2017 Market Report. AWEA's evaluation concludes that a total of 908 utility-scale turbines were installed in the first quarter of 2017, adding 2,000 MW of electric generating capacity. According to AWEA, the installations represent the wind industry's strongest start in eight years. AWEA's CEO stated, "We switched on more megawatts in the first quarter than in the first three quarters of last year combined."

Twelve states commissioned a total of 25 projects during the first quarter. Texas continues to be the national leader, installing 724 MW in the first quarter, with a total of 21,000 MW now installed. Kansas, New Mexico and North Carolina followed in first quarter installations, with 481 MW, 242 MW and 208 MW, respectively.

Looking ahead, AWEA reports that there are now 9,025 MW of new wind generation capacity under construction, plus 11,952 MW in advanced development, for a total of 20,977 MW of wind capacity. With respect to power purchase agreements (PPAs), AWEA reports that there were 1,781 MW signed in long-term contracts for wind energy, the most in a first quarter since 2013.
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