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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

Construction Begins on Ørsted's 420-MW Solar Plus Battery Storage Project in Texas

LCG, November 14, 2019--Ørsted announced yesterday that, following the final investment decision from its Board of Directors, the company has begun construction on its first utility-scale solar plus battery storage project, the Permian Energy Center.

The Permian Energy Center project includes 420 MW of solar PV generating capacity and 40 MW of battery storage capacity. The solar modules will be supplied by Jinko Solar and JA Solar. The project will be built on a 3,600-acre site in Andrews County, Texas, and is scheduled to commence operations in mid-2021.

Ørsted's CEO stated, "We are very excited to be moving ahead with the Permian Energy Center project and to be adding solar plus storage to our rapidly growing portfolio of US onshore assets. With the completion of Permian, Ørsted will have a US portfolio of operating assets that spans the full spectrum of offshore and onshore renewable energy technologies, which we believe is important as we look to offer our customers the most competitive and diverse clean energy solutions into the future."
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