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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

Entergy May Build Nuke

LCG, April 17, 2002--Entergy Nuclear, a subsidiary of Entergy Corp. in New Orleans, is contemplating building a new nuclear plant.

After the 1979 Three Mile Island accident, the nuclear plant building industry has been almost nonexistent, but recently companies have expressed interest in building new plants.

Entergy has told the Nuclear Regulatory Commission that it intends to request an "early site permit." The company says that a nuclear plant is economically feasible when natural gas costs over $5 per MBTU.

Natural gas is about $3 per MBTU right now, although it was as high as $10 per MBTU last year in some places.

Entergy has studied its pre-existing plants in hopes of finding the optimum location, perhaps Port Gibson, Mississippi. Applying for a new plant will cost $9 million and take a year to arrange; the application fee alone is $5.4 million.

However, the U.S. Department of Energy has already offered to pay half of the costs.

Entergy has several nuclear generators already, including reactors at Waterford III near Hahnville, River Bend near St.Francisville, and Port Gibson. The corporation says it will take three years to determine whether it will build a new plant.

Two other companies have begun the permit application process as well; Chicago's Exelon utility began on March 20, and Richmond, VA-based Dominion Resources began in early April.

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