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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

Work to Start on 3000-mile Gas Pipeline

LCG, July 26, 2000--Construction will begin early next year on a natural gas pipeline extending from westernmost China to the Yangtze River delta, according to a report today by the official news agency Xinhua.

The cost of the project is expected to equal that of Chinas ambitious Three Gorges hydroelectric project, the news service said.

The pipeline, which will originate in the Tarim Basin of Xinjiang Uygur province, will extend nearly 3,000 miles eastward to the region around Shanghai. According to todays issue of China petroleum News, companies are increasing efforts to develop gas fields in the western province.

Xinhua said the pipeline project will not only make available the potential resources of western China, but will help reform industries in provinces and cities along its route.

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