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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

French Utility Encounters Adversity in Heat Wave

LCG, Aug. 11, 2003--The French utility Electricite de France said today that it could be forced to counteract disruptions to its normal provision of power services, due to a lack of cooling water for its generating plants, and possible line failures underground due to heat.

"The situation deeply affects the coal, fuel, nuclear power output and hydropower production of EdF, which needs water to function," a statement read. It called the ongoing heatwave the source of potentially "serious and significant consequences on French electricity."

EdF has put in place mobile generating units for customers who might lose access to large generators should lines fail. The temperatures observed have gone up throughout August, while the utility had to shut a coal-fired plant outside of Paris because of insufficient cooling water.

National power production has been supplemented by purchases from outside the country, and power prices set a record today.
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