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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

Cuba Limits Power Use

LCG, May 28, 2002--The Cuban government has required state-run power users to cut their electricity use by 10 percent.

Cuba produces about 65,000 bpd worth of oil and natural gas. An additional 53,000 bpd Venezuelan crude oil is no longer being delivered to Cuba because the struggling island has not paid for some past shipments, forcing the country to pay more for imported oil.

Havana will probably pay 15 percent more for oil from other sources, according to a Reuters interview with a Cuban diplomat.
Since Cuba defaulted on credit payments, Spain, France, Italy, and Japan have stopped allowing trade credits to the country.

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