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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

El Paso to Expand Southeast U.S. Gas Mainline

LCG, May 1, 2001El Paso Corp. subsidiary Southern Natural Gas Co. said this morning it had secured enough binding agreements with gas shippers to warrant an expansion of a mainline serving the U.S. Southeast.

Southern Natural said it has entered into binding long-term firm transportation agreements for 267 million cubic feet of natural gas per day, "substantially all" of which will be used to supply new natural gas-fired power plants.

The company said it is preparing a Federal Energy Regulatory Commission application for certification of a mainline expansion, which will include the construction of both pipeline looping and compression to support this natural gas demand in Alabama, Georgia, and South Carolina. The expected in-service date for the expansion is June 2003.

"Power generators are stepping up to the plate to build new power plants across the Deep South tomeet increasing electricity demand," said Jim Yardley, president of Southern Natural Gas. "They arechoosing natural gas to fuel them, and we are able to expand our existing system in a timely manner tomeet their requirements."

This expansion comes on top of two previously announced mainline expansions, as well as the new Cypress Pipeline Projects that will serve southeastern Georgia and Florida.

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