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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

Pacific Northwest Faces 'Worst Ever' Water Year

LCG, March 6, 2001Washington Gov. Gary Locke is expected to hold a news conference today to stress the need to conserve energy in the face of a "worst ever" water year and, at the same time, give a pat on the back to four utilities that have added 1,500 megawatts of new electric generation.

There are lots of rivers in the Pacific Northwest, but when comparing one year with another people look at the big Columbia, which drains the entire region into the Pacific. In an ordinary bad year, about 60 million acre feet of water will flow past a dam near The Dalles, about 80 miles east of Portland, Ore., between January 1 and July 31. In the worst ever year, 1977, 53.8 million acre feet went by, and this year could be worse.

"It's the worst of the worst," Bonneville Power Administration spokesman Mike Hansen said yesterday.

And, according to the Northwest Power Planning Council, if the region continues to bask in unaccustomed sunshine, electric generation will be not much more than two thirds of normal.

Water levels in the impoundments behind Pacific Northwest dams which represent future electricity are at record lows partly as a result of federally mandated power sales to California.

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