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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

PSEG Proposes 1,100 Megawatt Plant for Ohio

LCG, Jan. 5, 2001--PSEG Power LLC yesterday proposed building a 1,100 megawatt natural gas-fueled, combined-cycle power plant to be located in Arcadia, Ohio.

The Arcadia location is only one of several sites in the Midwest being considered for construction ofmerchant power plants by PSEG Power, the company said. Which sites will be developed depends upon a number of factors, including potential receipt of tax abatements and the obtaining of local and state approvals.

"PSEG Power is looking at a number sites in the Midwest for additional plant construction," saidTim Young, the company's regional director for business development. "A plant of this size bringssignificant economic and tax benefits to the local community. We plan to work with local officials tomaximize these benefits."

At its peak, construction of the plant would employ more than 600 people. it would have about 25 to35 full-time employees once the plant begins commercial operations in 2004.

PSEG Power is a sister company to Newark, N.J.-based Public Service Electric & Gas Co.

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