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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

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

Sempra and Indonesian Co. May Strike LNG Deal

LCG, August 14, 2003BP Migas is planning to send representatives to the U.S. in order to sell liquefied natural gas to Sempra Energy.

Indonesia is one of the worlds leading LNG providers and recently signed a contract with Mexico for three to six million tons of LNG per year, starting in 2007. Indonesia currently exports over 23 million tons of LNG, mostly to Asia.

BP Migas intends to meet with Sempra at the end of August and hopes to sign a preliminary agreement regarding a possible LNG contract.

Meanwhile, several U.S. companies are looking into developing LNG terminals on the Pacific Coast of North America, particularly in Mexicos Baja California. Federal Reserve Chairman Alan Greenspan has endorsed such action, warning that a lack of natural gas may hamper economic recovery.

Currently LNG comprises only one percent of the nations consumed natural gas.

Sempra is based in San Diego, California and is the parent company to utility San Diego Gas & Electric.

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