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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

Ontario Looks to Manitoba for Electricity Supplies

LCG, August 13, 2004--Ontario is facing shortfalls in generating capacity over the next few years, and one supply alternative gaining momentum is building a 1,250 MW transmission line to Ontario from the proposed Conawapa hydro project on Manitoba's Nelson River. A feasibility study was just completed and is under review by the government of Ontario. In addition to the billions of dollars associated with the project, a critical issue is an acceptable transmission corridor.

Ontario's projected electricity shortfall is driven by the government's planned closing of nearly 7,600 MW of coal stations prior to 2008 in order to reduce emissions. Earlier this summer, the Ontario Ministry of Energy issued a Request for Proposals (RFP) for 2,500 MW of "clean generation" and demand side projects.

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