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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

Austin Energy Opens Sand Hill Energy Center

LCG, November 5, 2004--The official opening of Austin Energy's new, 300-MW Sand Hill Energy Center occurred on Wednesday. The cost of the station, located near the Austin airport, was $177 million. Consistent with the Austin's environmentally sensitive outlook, the gas-fired, combined-cycle station will use reclaimed wastewater.

With the addition of the station, Austin Energy will begin the phased, shut down of the aging, gas-fired Holly Power Plant, which was built between 1960-74 in east Austin. In December of this year, two 100-MW units will be retired, with the two remaining 200-MW units to be shut down in December 2007.

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