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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

New Mexico Has New Gas Turbine Plant

LCG, Aug. 29, 2002--A new gas-fueled generator is undergoing testing in La Mesa, N.M., in preparation for operations at the end of the year.

The Afton plant, with a capacity of 135 megawatts, was built by Public service Company of New Mexico (PNM), at a cost of $75 million. While the plant now consists of one gas turbine, there are plans to bring capacity up at an unspecified date by an additional 75 megawatts in a combined-cycle configuration, which will also improve the plant's efficiency.

The construction at Afton, twelve miles south from Las Cruces, was performed by TIC and Bibb Engineering, as Afton Power Partners. PNM spokesman Bill Real stated, "It (the plant) is also part of our promise to invest in New Mexico in order to improve the reliability of the regional power supply." A switching station at the plant site will provide access to the transmission network in the state and the West generally.
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