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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

Peabody Energy Signs Customers for Midwest Plant

LCG, July 20, 2004--A number of Midwest rural electric cooperatives and municipal agencies, including Indiana Municipal Power Agency, the Missouri Joint Municipal Electric Utility Commission, and Wolverine Power Supply Cooperative in Michigan, have executed a letter of intent with Peabody Energy to acquire partial interest in the Prairie State Energy Campus in Washington County, Illinois.

The agreement calls for the group to own about one-third of the 1,500 MW project, which includes coal reserves, a generating plant and output. The project is one of two, similar coal projects that Peabody Energy is currently developing in the Midwest. Peabody hopes to start construction next year and commence operations in 2008 or 2009.

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