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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

AEP to Install New Emission Controls on Big Sandy Unit 2

LCG, April 9, 2001American Electric Power Co. Inc. said Friday it has asked the Kentucky Public Service Commission for authorization to install a new emission control system on Unit 2 of its Big Sandy generating plant near Louisa, Ky.

The control system will reduce nitrogen oxide emissions from the 800 megawatt unit by about 90 percent, the company said.

Site preparation will likely begin in the latter half of this summer, with construction scheduled to begin on the $107 million project this fall, according to Timothy C. Mosher, Kentucky state president for AEP. "This filing will help ensure that the project proceeds on schedule," he said.

AEP will install a selective catalytic reduction system on the unit. These systems use a chemical reaction to break down the nitrogen oxides into nitrogen and water. Ammonia is used to initiate the chemical reaction.

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