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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

CA ISO Submits MD02 Details

LCG, June 18, 2002--The California Independent System Operator gave the Federal Energy Regulatory Commission more details of its California power market plan, MD02.

Most of the ISO's plan was submitted in April, but the last details were submitted today.

One aspect of the ISO plan instates measures to ensure moderate electricity prices in case FERC does not extend the price cap beyond September 30, which is likely.

The ISO plan also reportedly tries to shift electricity trading from the spot market to the forward market, and utilities would have to be able to show their sources of electricity available to meet demand one month in advance. The plan explains how generators both in and out-of-state should make power available for purchase, and it attempts to promote energy development at appropriate physical locations to relieve congestion and provide efficient electricity production.

The plan will be evaluated by the Federal Energy Regulatory Commission.

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