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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

NextEra Commissions Largest Concentrated Solar PV Project in North America

LCG, October 26, 2011--NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc., recently commissioned the Hatch Solar Center, located in Hatch, New Mexico. The 5-MW facility is now the largest concentrated photovoltaic solar facility operating in North America. The facility initially began operating in June, and the power generated is purchased by El Paso Electric under a 25-year power purchase agreement (PPA).

The Hatch Solar Center employs 84 Amonix 60-kW units and include dual-axis tracking systems to maximize energy production throughout the day. Amonix CEO stated, "The Hatch Solar Energy Center is in a prime sunny and dry location, perfect for Amonix technology, which generates more energy per acre than any other solar technology."

According to a recent presentation, NextEra Energy Resources has substantial wind and solar investments planned for 2011 through 2014 for which it has already secured long-term power purchase agreements, and its capital expenditures in 2011-2012 are estimated to be slightly higher for solar ($1.675 - $1.875 billion) than wind ($1.450 - $1.650 billion) projects.
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