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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

Southeast Mexico, Home to 12 Million, Goes Dark

LCG, Feb. 27, 2002--A blackout occurred for six southern Mexican states Monday evening when a power line failed.

The blackout, which started at about 5:30 p.m., lasted for several hours in most states, while others waited longer. No significant disruptions occurred in the states of Oaxaca, Tabasco, Campeche, Chiapas, Quintana Roo and Yucatan, populated by 12 million.

The Federal Electricity Commission (CFE) manages the national grid in Mexico. President Vicente Fox's administration has advocated that private-sector investment be allowed to bolster power transmission infrastructure, and has warned that blackouts may become regular occurrences by 2005 without inflow of private capital. However, support for a continued state-controlled power grid is strong, due to a tradition of emphasis on sovereignty and economic self-reliance.
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