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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

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 Announces Texas New Wind Power Project

LCG, April 6, 2001--FPL Energy said yesterday it would build one of the world's largest wind-powered electric generating facilities on King Mountain in Upton County, Texas, about 50 miles south of Midland-Odessa.

The project will have a capacity of 278.2 megawatts, the company said. When the whims of nature are factored in, wind generation typically produces about 30 percent of its rated capacity, so the King Mountain facility will produce something like 84 megawatts.

"We are pleased to be enhancing our portfolio in Texas, where demand for electricity is growing and state regulators are encouraging development of a robust wholesale market, particularly in renewable sources and clean-burning natural gas," said Lew Hay, president of FPL Energy.

FPL Energy currently owns and operates a 1,000 megawatt natural gas plant in Paris, Texas and the 75 megawatt Southwest Mesa Wind Farm in West Texas. In addition, it has two plants currently under construction, a 535 megawatt natural gas plant in Bastrop, near Austin, and the 160 megawatt WoodwardMountain wind power facility, also in the Midland-Odessa area.

The King Mountain project will use 214 wind turbines rated at 1,300 kilowatts each. Figuring nine towers per square mile, the wind farm will occupy about 24 square miles of Texas.

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