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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

Wyoming Coal-bed Methane Leases Ruled Illegal

LCG, April 30, 2002--In response to allegations by environmental groups, a panel from the Department of the Interior ruled that leases on Wyoming's Powder River Basin were issued illegally.

Prior to the ruling, the Bureau of Land Management (BLM) had allowed the issuance of leases for 2,500 acres, but the panel found that the BLM had used outdated environmental studies in assessing the land and therefore issued the leases illegally.

The decision has worried parties considering coal-bed development, namely in western states where public land might be used.

This reversal comes as a snub to President Bush's energy plans. Bush has encouraged exploration throughout the country and specifically coal-bed mining in the Rockies in an attempt to minimize U.S. foreign fuel dependency.

Environmental groups Wyoming Outdoor Council and Powder River Basin Resource Council instigated the lease reevaluation. Wyoming BLM is still considering its response to the decision.

Coal-bed methane provides a new source for natural gas. The method involves pumping groundwater to alleviate pressure and release methane gas from coal seams. Coal-bed mining in the Powder River Basin has yielded about 10,000 wells so far, with a projected 40,000 to come into service over a few years' time.

The Federal government leases public land to allow industry to develop mineral resources. The Bureau of Land Management handles 700 million acres of mineral land.

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