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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

Fund Could Offset Energy Price Spikes in Edmonton

LCG, Feb. 6, 2002--Alberta's Revenue Minister said that representatives at a Future Summit Meeting discussed setting aside funds to be used when Alberta energy prices increase.

The minister, Greg Melchin, said that the existing Heritage Fund, created in 1976 to accumulate surplus energy revenues, could be used to make sure that other budgetary priorities are not impacted by high energy prices. It would also assist in maintaining reliable electric service, said Melchin.

The government did not approve similar proposals made in prior years, but the idea was revived during the two-day Future Summit's coverage of fiscal matters. A report by the Institute of Chartered Accountants of Alberta suggested that Alberta's remaining debt could be paid off with $6 billion, and that $3.5 billion could be used for the stabilization fund. The value of the Heritage Fund currently stands at $12 billion, and would receive additional funds from surplus revenues when they occurred.

While the conference proceedings suggested that support exists for countering boom-and-bust energy prices' effects, Melchin said that the province would need to "bring clarity" concerning Heritage Fund transactions.
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