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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

Judge Blocks New York City Summer Power Plants

LCG, April 5, 2001A New York Supreme Court judge yesterday threw a money wrench into plans by Gov. George Pataki to have seven new, small power plants in service in New York City by this summer, saying the New York Power Authority must halt all work until it conducts a thorough environmental review.

Judge Joseph G. Golia in the State Supreme Court in Queens ruled only on a plant planned for that borough, but dealt with some of the same issues being considered in a Brooklyn lawsuit challenging all the plants.

The NYPA, pressed to meet an expected electricity shortage in the Big Apple this summer, decided that it did not need to prepare environmental impact studies for the mini-plants, because of the time required for such studies.

Judge Golia said the Authority was in error, and concluded that it had marshaled its facts to support its pre-determined position. He gave parties to the suit five days to work out a settlement for him to sign. In the meantime, work on the Queens plant went on.

The Power Authority plans to install 11 small gas-fueled combustion turbines at six sites in New York City, two in the South Bronx, two in Brooklyn, one in Queens and one on Staten Island. A seventh site is on Long Island.

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