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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

CMS in Abu Dhabi Power-Water Plant Deal

LCG, Nov. 20, 2001--Abu Dhabi government officials said this morning that a joint venture between CMS Energy Corp. of the U.S. and International Power plc of Great Britain will join with the Abu Dhabi Water and Electricity Authority in management of a new water and power plant to be built next year in the emirate.

The government Authority will own 60 percent of Shuweihat CMS International Power while the American and British firms will split the remaining 40 percent. The new company, which has been capitalized at 675 million dirhams ($184 million U.S.), will operate and maintain power and desalination operations at the Shuweihat plant for 20 years, the officials said.

The plant will include a natural gas-fuelled 1,500 megawatt power plant and a water desalination facility with a capacity of 100 million imperial gallons (120 million U.S. gallons) per day. Construction on the facility, about 150 miles west of Abu Dhabi city, will start immediately and take a little more than two years.

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