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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

New York Demand Surges in Heat Wave

LCG, Apr. 19, 2002--Record-breaking temperatures in the New York City area caught utilities and the grid manager New York Independent System Operator off-guard yesterday as large commercial customers were asked to cut their power consumption in order to prevent blackouts.

On Thursday, Ken Kapp, spokesman at the NYISO, said, "we really weren't anticipating the load being this high because the temperatures were supposed to drop." New York City experienced highs of nearly 90 degrees Fahrenheit on Tuesday and 95 degrees Wednesday. The reserve margin of power generation was low, due to plants being taken off-line for maintenance, typically scheduled in anticipation of heavy summer demand. Consolidated Edison Co. of New York, Inc. said its plants were experiencing no unforeseen problems.

The ISO's requests on both Wednesday and Thursday for voluntary demand reductions may be a prelude to a summer of strained supplies. The grid operator issued a report last month that said new generators were critical "to avoid serious electricity shortages, improve air quality, facilitate economic growth and avert strong upward pressure on prices."

On Wednesday, the Long Island Power Authority experienced a reserve during peak usage of 300 megawatts.
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