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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

PG&E Unit Begins Building Big Arizona Power Plant

LCG, May 22, 2001PG&E Corp.'s National Energy Group, an affiliate of bankrupt California utility Pacific Gas & Electric Co., began construction yesterday of a 1,048 megawatt natural gas-fueled, combined cycle merchant power plant on a site 70 miles west of Phoenix, Ariz.

The Harquahala Generating Plant is scheduled to begin commercial operation in mid-2003. According to the National Energy Group, the plant will provide 35 full-time jobs when completed and will spend between $6 million and $7 million annually on local purchases. The facility will also generate more than $10 million a year in local property taxes.

Among those present at a ground breaking ceremony were Maricopa County Supervisor Mary Rose Wilcox and Arizona Corporation Commissioners Jim Irvin and Marc Spitzer. Tom Boren, chief executive of the national Energy Group, presented Wilcox with the first of 11 checks for $50,000 to the Harquahala Generating Community Fund.

Wilcox, in turn, said she was confident that the company would be careful about the environment "in the spirit of good corporate citizenship."

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