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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

Reliant Begins Building Las Vegas Area Powerhouse

LCG, Nov. 15, 2001--Reliant Energy Wholesale Group said yesterday it has begun construction of a 550 megawatt generating station that will serve power markets in Nevada and the West beginning in late 2003.

Reliant's Bighorn power plant is being built near Primm, Nev., about 35 miles south of Las Vegas.

"Reliant Energy Bighorn is part of a long-term solution to the problems that the western states have experienced with power shortages and price volatility," said Steve Letbetter, chief executive of Reliant Resources, the wholesale group's parent.

The company said that the Bighorn plant, like all Reliant plants in Nevada, will employ "dry cooling" to conserve water, a scarce commodity in southern Nevada. Reliant also said the plant willmeet or exceed all state and federal requirements for air and water quality.

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