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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

Groundbreaking for New LNG Terminal in Mississippi

LCG, October 16, 2008--The ceremonial groundbreaking occurred yesterday for the Gulf LNG Clean Energy project located southeast of Pascagoula on the Pascagoula Bayou Casotte Ship Channel. When completed, the liquefied natural gas (LNG) terminal will enable 150 tankers per year to deliver natural gas from Africa. The project is scheduled for completion in late 2011 and is estimated to cost $1.1 billion.

The project owners are El Paso (50%), The Crest Group (30%), and a subsidiary of the state-owned oil company of Angola, Sonangol USA (20 percent).

The LNG terminal will have two storage tanks, with a combined capacity of 6.6 Bcf. The project includes approximately 5 miles of 36-inch diameter pipeline that will enable deliveries from the terminal to interstate pipelines, including Gulfstream, Destin, Florida Gas Transmission and Transco. The delivery capacity from the terminal to the interstate pipeline system will be approximately 1.3 Bcf/day.

The project was first announced in 2004 and received approval from the Federal Energy Regulatory Commission (FERC) in February 2007.
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