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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

FPL to Build 1,789 Megawatt Texas Power Plant

LCG, April 18, 2001--FPL Energy, a subsidiary of FPL Group Inc. of Florida, said yesterday it will build, own and operate a 1,789-megawatt, natural gas-fired power plant in the Dallas-Fort Worth area that will be one of the largest independent generation projects in the state.

Construction of the combined-cycle facility is scheduled to begin in June with commercial operation expected in the second quarter of 2003, FPL said.

Development of the plant was begun by Cobisa Corp., which sold 95 percent of the project to FPL last year. The change was not announced at the time because of permitting uncertainties. Cobisa will retain 5 percent ownership.

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