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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

Florida PSC Approves FPL's Port Everglades Project

LCG, March 29, 2012--The Florida Public Service Commission (PSC) Tuesday approved Florida Power & Light Company's (FPL) request to modernize its Port Everglades Next Generation Energy Center in Broward County. PSC Chairman Ronald A. Bris' stated, "Making sure Florida's energy supply is dependable and cost effective protects consumers now and in the future. This modernization will produce more efficient, cleaner energy, and the plant's port location will maintain system reliability since backup fuel, if needed, can be delivered via water."

FPL plans to install a 1,277-MW, combined cycle electric generating station that will be fueled by natural gas at its existing site. As part of the project, four existing 1960s-era oil and natural gas fueled steam electric generating units will be dismantled. The new facility is scheduled to commence construction in 2014, with operations expected to begin in June 2016.

The $1.2 billion Port Everglades project is projected to save FPL customers $469 million relative to continued use of the old, existing units. Leveraging the existing site infrastructure and transmission lines makes the project quite cost effective.

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