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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

U.S. Senate Limits Debate on Energy Bill

LCG, April 23, 2002-The Senate voted 86-13 today to discontinue debate on the energy bill that has been pending for over a month.

A final vote on the energy reform bill may come as early as this week.

Reforms still waiting to be debated include hydroelectric licensing changes, ethanol, and tax breaks for environmentally sound energy.

California and New York senators resisted limiting debate, especially in reference to upcoming discussion of ethanol use.

So far the bill incorporates $3.3 billion for renewable energy production, $4.5 billion for domestic oil and natural gas, and $2.1 billion for hybrid and fuel cell driven devices, buildings and cars, and $2.4 billion for energy efficiency and conservation.

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