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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

FPL to Build 160 Megawatt West Texas Wind Farm

LCG, July 20, 2000--TXU Electric & Gas Co. said yesterday it had selected FPL Energy, the independent power production subsidiary of FPL Group Inc., to build a 160 megawatt West Texas wind farm as part of a "green power" requirement in the Texas electric deregulation act.

Costs of the project were not disclosed, nor were federal and state subsidies, or the amount of Texas real estate needed for the wind farm.

FPL Energy will build, own and operate 242 wind turbines in West Texas. Each wind turbine stands 166-feet tall and weighs a total of 143,000 pounds. The fiberglass blades are 76-feet long. Construction is scheduled to begin late this year with the first power deliveries to TXU commencing in the summer of next year.

"This project will be a major addition to our use of wind energy, and it clearly solidifies TXUElectric as a renewable energy leader in America," said Steve Philley, TXU vice president for energy supply. "As one of the largest purchases of wind power in North America, this is a landmarkagreement in the renewable energy industry."

FPL Energy said it currently operates wind farms in five states, with 974 megawatts of capacity and a net FPL Energy ownership of 587 megawatts. The company also owns a 1,000 megawatt gas-fired power plant that occupies a few acres in Paris, Texas.

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