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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

Tokyo Electric Operates One Nuclear Reactor

LCG, May 9, 2003--A single nuclear reactor out of Tokyo Electric Power Company's (TEPCO) fleet of 17 such power plants was restarted this week, following an inspection that turned up no cracks or structural deficiencies.

The fleet was completely shut down on April 15, but other than the 1,350-megawatt No. 6 reactor, the utility has no immediate plans to restart others. The shutdown was initiated due to revelations concerning cover-ups of the discovery, at certain reactors, of cracks. The cost of either purchasing power or running fossil-fuel plants in its fleet has impacted TEPCO, which may have to bring new plants into operation before their scheduled start dates, and has made corporate users aware that they can receive discounts for lowering consumption.

The company has disclosed that with the increased demand for power expected during summer, a minimum of 10 of the reactors will need to be restarted to avoid a serious power emergency. The No. 6 reactor was shut down in January for a regular inspection, and is located about 155 miles north of Tokyo.
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