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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

1,300 Megawatt Idaho Power Plant Planned

LCG, April 17, 2001The year-old independent power producer Newport Generation Inc. said yesterday it plans to build a 1,300 megawatt power plant in Rathdrum, Idaho, 32 miles northeast of Spokane, Wash.

"Rathdrum is an ideal location for energy development since its proximity to key transmission infrastructure is unique," said Scott Noll, vice president for development. "Both a Bonneville Power Administration electric transmission line and a PG&E Gas Transmission Northwest natural gas pipeline intersect the site."

The Kootenai Power Project is planned for a portion of a 320-acre site adjacent to a new 250 megawatt power plant currently under construction by Avista Energy, Inc. and Cogentrix. Upon completion in 2004, the $550 million natural gas-fired combined cycle plant will generate electricity equivalent to that required to meet the needs of a city the size of Seattle, Newport said.

"The Northwest needs electric power and the Rathdrum area's strategic position has attracted power developers," said Robert Kahn, Newport's public affairs director. "We fully expect that our commitment to clean energy and environmental protection will result in a model project."

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