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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

Chinese Gas Field Holds 35 Trillion Cubic Feet

LCG, Nov. 26, 2001--Proven reserves of natural gas at Changqing Oil Field, China's largest natural gas basin, exceeds a whopping 35 trillion cubic feet, the official Chinese news agency Xinhua reported yesterday.

Changqing comprises a dozen fields in the Ordos Basin which covers Shaanxi, Gansu and Shanxi provinces along with Inner Mongolia and Ningxia Hui autonomous regions. It has a combined exploration area of 143,000 square miles and is the largest onshore gas field in China.

The field began to transport oil to Ningxia, Gansu and other provinces in northwest China after the first oil pipeline was laid in 1979. Later, two gas pipelines became operational to provide gas to 15 large cities including Beijing, Tianjin and Xian.

Though natural gas accounts for only 2.1 percent of China's energy use, it amounts to about a tenth of the world's average, the news agency said.

Xinhua said exploration for natural gas in the Ordos Basin has become a strategic move in China's ongoing energy structure adjustment. The region will become a stable gas supplier to north, northeast and central China, and the steady gas supply will help Beijing and other large cities to improve air pollution.

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