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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

Tampa Electric Affiliate Puts Plant On-line in Virginia

LCG, Aug. 15, 2000--An affiliate of Tampa Electric Co. threw a party yesterday morning to dedicate about half of a power plant in Accomack County, Virginia, which is across the Chesapeake Bay from the rest of the state.

The 312 megawatt Commonwealth Chesapeake Power Station is being built by Teco Power Services Corp. in two phases, and yesterdays ceremony celebrated commercial operation of the 135 megawatt first phase. The second phase is scheduled to begin production next June.

The plant was dedicated by Sen. John Warner, a Virginia Republican, and former Commerce Secretary Robert Mosbacher, whose company, Mosbacher Energy Co. is affiliated with the plants developer.

Power from the plant is sold into the PJM wholesale market, the largest centrally dispatched electricity control area in North America.

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