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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

Long Island Power Study Points to Re-Powering, Not New Plants

LCG, August 6, 2002-C.W. Post's Center for Management Analysis released a study on Long Island, New York's power supply.

The report, developed at Long Island University's C.W. Post campus, comes to the conclusion that existing, old plants can be converted easily into combined cycle facilities, a process which could result in three times the current Long Island capacity.

According to Center for Management Analysis director Dr. Matthew C. Cordaro, as much as 4,700 new megawatts might be added through combined-cycle conversions.

Although the Center's study emphasizes bringing new technology to old plants, it also suggests that the completion of current New York power projects will prevent overextending the area's electricity capacity while improvements are made elsewhere.

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