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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 Says It is Bypassed in Nuclear Waste Discussions

LCG, Feb. 17, 2004--Officials at the Department of Energy (DOE) have apparently contacted high-level officials of states where nuclear waste from aging weapons factories is located, but according to New Mexico authorities, have not opened communication with them, although the department had discussed shipping waste into the state prior to the opening of a facility at Nevada's Yucca Mountain.

A spokesman for the DOE, Joe Davis, confirmed discussions have taken place in an interview with the Albuquerque Journal. A federal judge cited current law last summer in ruling that "high-level waste" in Washington state, Idaho and South Carolina could not be shipped to the Waste Isolation Pilot Plant for nuclear waste, near Carlsbad. New Mexico Environment Secretary Ron Curry believes that the DOE is excluding New Mexico from current talks in order to "divide and conquer". Curry thinks the agency hopes to change the law by working through the governors of the states with the waste.

The DOE's Davis said that the agency does plan on another attempt this year at mounting a legislative strategy to revise the law. New Mexico is in the middle of changing the Waste Isolation Pilot Plant's permit, in order to exclude the nuclear "sludge".
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