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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

Rising Costs Lead Westar to Defer Decision on New Coal-fired Power Plant

LCG, December 29, 2006--Westar Energy Inc. announced that it plans to defer selecting a site for a new, 600-MW electric generating station due to significant increases in the estimated cost of the coal-fired facility. The company had previously expected to make the site selection by the end of 2006.

The estimated cost has increased from $1 billion to $1.4 billion since the plant was announced in May 2005. With the higher cost, the project is no longer necessarily the low-cost supply to serve the utility's growing demand for electricity in Kansas.

Duke Energy has had similar facility cost increase issues with its planned upgrade and expansion of its Cliffside Steam Station in North Carolina. In May 2005 Duke filed an application with the North Carolina Utilities Commission that included the addition of two, 800-MW coal units. Late this year, Duke announced that the estimated cost has increased from $2 billion to $3 billion. Due to the roughly fifty percent increase in the estimated cost, the Commission has scheduled additional hearings to begin January 17, 2007.





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