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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

SoCal Cities Propose 240 Megawatt Burbank Plant

LCG, May 10, 2001The city of Burbank, Calif., along with Anaheim, Colton, Glendale and Pasadena as partners, has proposed development of a 240 megawatt generating unit that would be built at an existing power plant belonging to the Burbank Water and Power department.

Burbank said yesterday it would submit an application for certification to the California Energy Commission on Monday for the Magnolia Power Project. "The cities are proposing to construct a clean-burning, natural gas-fueled generating unit by mid-2004 to provide participants a reliable, long-term electricity resource," said Ronald E. Davis, Burbank Water and Power's general manager.

Because the site has been used as a power plant since 1941, Davis said much of the infrastructure is already in place, such as the natural gas supply pipeline and electrical transmission system. In addition, reclaimed water will be used for cooling, to the extent practicable.

In about 12 months, decommissioned generation structures on the site will be removed prior to installation of a combustion turbine-generator, heat-recovery steam generator and exhaust stack over a 30-month period, Burbank said. Construction will include a turbine-generator building, cooling tower, andcontrol and administrative buildings.

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