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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

Entergy Selects MHPS Gas Turbines for Texas Project

LCG, January 24, 2019--Entergy Corp. subsidiary Entergy Texas has selected Mitsubishi Hitachi Power Systems (MHPS) gas turbine units for its planned Montgomery County Power Station (MCPS) near Willis, Texas. The project will include two Mitsubishi M501GAC turbines in the combined-cycle electric generating facility, which will be fueled with natural gas. The project will have an installed capacity of 993 MW and is scheduled to commence operations in 2021.

The Montgomery County Power Station, through the use of high-efficiency, gas turbines and other design features, is projected to save for Entergy Texas customers over $1 billion over the next 30 years.

The president and CEO of Entergy Texas stated, "The Montgomery County Power Station will supply the energy to help our communities and customers prosper. This power plant will not only provide needed generating capacity for Southeast Texas, one of the fast-growing regions in the U.S., but it's another step in our ongoing effort to modernize Entergy's generating fleet to provide power more efficiently, affordably and with fewer emissions."
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