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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

AES Completes Financing for 450 Bangladesh Megawatts

LCG, April 13, 2001AES Corp said yesterday its AES Meghnaghat Ltd. subsidiary has signed agreements with the Asian Development Bank, Infrastructure Development Company Ltd. and ANZ Investment Bank for the financing of its $300 million, 450 megawatt combined cycle gas-fired powerplant in Bangladesh.

The Meghnaghat plant and another 360 megawatt plant in Haripur are the first large-scale independent power programs in the country to be developed, financed and implemented under the Private Sector Power Generation Policy of Bangladesh.

AES will own and operate the Meghnaghat plant, which is located about 18 miles southeast of the capital city of Dhaka. Electricity will be sold to Bangladesh Power Development Board under a 22-year power purchase agreement at what AES claims is one of the lowest electricity prices ever offered.

Titas Gas Transmission and Distribution Co. Ltd., a wholly-owned subsidiary of state energycompany Petrobangla, will supply natural gas to the power plant for the term of the power purchaseagreement, AES said.

The plant is being designed and built by a consortium of Hyundai Engineering & Construction Co. Ltd. and Hyundai Heavy Industries Co. Ltd. and is expected to be completed by October of next year.

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