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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

Roseville, CA Considers Plant Construction

LCG, November 26, 2002-After ending its contract with an Enron subsidiary, the California city of Roseville's local council has begun contemplating constructing Roseville's own power plant.

The city, located some 20 miles northeast of Sacramento, had a deal with Enron subsidiary Roseville Energy Facility LLC to construct a 750-megawatt plant. Last week the City Council decided unanimously to cancel the contract with the company, as the company had failed to pay $100,000 it owed the city.

The city has since kept $600,000 in fees collected from Enron and has been considering building its own, one- or two-hundred megawatt facility.

Roseville is currently dependent upon electricity generated far away, and the city is interested in the reliable electricity a local plant could provide.

Some residents are already worried about pollution from local construction, although the plant would be smaller than the one previously planned.

Roseville is in Placer County and has a population of about 80,000.

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