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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

Enron Hopes to Build Memphis Plant

LCG, Apr. 9, 2002--A spokesman for Enron said that the company is "early in the development process" for a 500-megawatt, gas-fired peaking plant that would be built near Memphis, Tenn. following the expected completion of a bankruptcy reorganization within a year.

The plant, which would be built in Tennessee Valley Authority's service territory, could require expansion of the transmission system. John Moulton, a spokesman at the TVA, said that it is too early to know whether such investment is necessary. The output of the plant would be sold into the wholesale market.

The plant would be sited in Arlington. Two plants have already been built by Enron in Tennessee prior to its filing for Chapter 11 bankruptcy protection. The plants, which were subsequently sold, started operations in 1999 and 2000.
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