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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

Dominion, CME Plan 800 Megawatts for Michigan

LCG, April 12, 2001-- Dominion Resources Inc. said this morning it would partner with CME North American Merchant Energy in the proposed development of an 800 megawatt power plant near the village of Dundee in Monroe County, Michigan.

Jerry V. Llaneza, Dominion's director of business development, said "the proposal needs additional analysis. The ultimate timeline for developing and beginning commercial operations will depend on several studies that the new partnership intends to carry out before proceeding."

The company said it has yet to perform all the environmental and other permitting studies required for the $300 million plant. If the project moves forward, the plant will be fueled by natural gas supplied from Dominion's reserves in the region.

CME is a power plant developer currently involved in co-developing 6,300 megawatts of greenfield merchant plants in Ohio and Michigan.

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