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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

New Mexico Poised to Raise Renewable Energy Requirements to 80 Percent

LCG, March 14, 2019--The Legislature of New Mexico recently passed the Energy Transition Act, which is now expected to be signed by the Governor.

The renewable energy requirements set forth in the Energy Transition Act (Senate Bill 489) for electric distribution cooperatives and public utilities include 40 percent by January 1, 2025 and 50 percent by January 1, 2030. The legislation also includes a target to achieve a zero carbon resource (i.e., resources that emit no carbon dioxide) standard by January 1, 2050, composed of at least 80 percent renewable energy. For public utilities, the renewable energy requirements also include no less than 80 percent by January 1, 2040 and zero carbon resources shall supply 100 percent of all retail sales of electricity in New Mexico.

The Governor recently stated in an editorial, "We have a unique opportunity to transform energy in New Mexico with the Energy Transition Act. Senate Bill 489 is bold, comprehensive legislation that will establish the state as a national leader in both renewable energy and address the causes of climate change, providing a pathway for a low-carbon energy transition away from coal and providing workforce training and transition assistance to affected communities."

The legislation also includes terms to support the Public Service Company of New Mexico recoup its investments in the coal-burning San Juan Generating Station, plus funds to aid displaced workers.
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