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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

Midwest ISO Begins 45-day Market Test

LCG, Aug. 2, 2001--The Midwest Independent Transmission System Operator Inc. yesterday began 45 days of market trials, a series of validations and drills it hopes will demonstrate its ability to operate the first regional transmission system in the Midwest.

The Midwest ISO is expected to become operational this coming December 15, but first must show the Federal Energy Regulatory Commission that all necessary features are in place to ensure continuing reliable grid operations.

"With the help of our transmission owners we are beginning the readiness demonstrations that willtest all of our systems, from the initial point when transmission requests are made to the time whenthe bills are issued," said Michael J. Gahagan, chief information officer.

The ISO said it will conduct drills in the following operational areas: transmission market activities, tagging and scheduling, flowgate verification, transmission (operational) planning, security coordination, security response, outage scheduling, maintenance coordination, 24x7 operations and daily and monthly settlements and billing.

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