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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

AES Wants Indian Government to Help it get Paid

LCG, Oct. 24, 2001--AES Corp. of the U.S. has asked the prime minister of India for his help in getting paid for power it has produced for the state of Orissa on India's east coast.

The dispute is an echo of a similar brouhaha on the west coast of the subcontinent, this one between the state of Maharashtra and Enron Corp.

In a letter to Indian Prime Minister Atal Bihari Vajpayee earlier this month, AES President Dennis W. Bakke said the problem in Orissa had prompted his company to have second thoughts about whether to remain in India.

According to the Associated Press, Bakke told the prime minister that his company has faced "expropriation, repeated contract violations, intimidation ... and direct interference with day-to-day management" by the state government and its agencies. The letter also complained about government-run agencies failing to pay 2.1 billion rupees ($44 million U.S.) in bills.

"If the situation faced by AES is not remedied urgently, it will undermine the trust and confidence of foreign investors in India," Bakke wrote. "While AES still remains committed to India as a country it would very much like to serve, our determination to continue is being tested."
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