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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

States Could Bring Suits Against Power Plants

LCG, Nov. 10, 2003--Attorneys general in three Northeastern states have indicated that they might try to enlist other state officials in bringing lawsuits against coal-fired power plants.

Last week, the Environmental Protection Agency (EPA) announced that it would consider possible violations of the Clean Air Act under revised standards, meaning that ongoing investigations would have less chance of being brought to trial. Richard Blumenthal, attorney general for Connecticut, Eliot Spitzer of New York, and New Jersey attorney general Peter Harvey have been in communication about possible legal action, according to Blumenthal.

Blumenthal said that the Bush administration's position on plant modernization directed towards the Northeast is "basically, 'Drop Dead'". If lawsuits are filed by states in addition to those filed against changes to the Clean Air Act, they would likely not have the same resources behind them as they might if they were being brought by the EPA.
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