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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

Striking South Korean Power Workers Face Dismissal Deadline

LCG, Mar. 22, 2002--A protracted strike by South Korea's unionized power industry workers will result in their dismissal Monday morning if they do not return to work, the country's energy minister announced yesterday.

The workers have expressed resistance to privatization, which they believe will result in job losses and increased power prices. South Korea, which intends to finalize the sale of all but its hydro and nuclear power divisions, hopes the country can increase power output 100 per cent by 2015.

The striking workers make up two-thirds of the 8,400 employed in the power industry. The 3,489 workers who would be fired Monday would follow 197 who have so far been fired.

Shin Kook-hwan, the energy minister, said, "We will review how former British prime minister Margaret Thatcher handled a strike by unionized coal miners and how former U.S. president Ronald Reagan treated a strike by air traffic controllers." He also indicated that although the workers thought that firing them would be a reckless move, "this is a country upholding democracy, freedom and market principle. They are engaged in illegal activities. We should abide by laws."

Union spokesman Lee Byung-chul told Reuters that despite the possibility of 500 new workers being hired to replace fired unionists, "it is pretty doubtful how long the power plants can be kept in operation without the workers." Soldiers have been trained to take over some posts.
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