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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

Covanta Energy Plans to Develop Energy-from-Waste Plant in Wales

LCG, January 30, 2009--Covanta Energy announced that it plans to construct a 70-MW power plant in Merthyr, Wales that will used waste as fuel. The target date for operations to begin is 2014.

The project, Brig y Cwm, will consume approximately 825,000 tons of waste per year. The estimated cost of the plant is approximately $570 million, and the project will be financed, built, owned and operated by Covanta Energy.

Covanta Energy is expanding its investments in biomass projects across the United States. In December 2008, Covanta announced that it had completed its acquisition of two biomass energy facilities in Maine. The two facilities, located in West Enfield and Jonesboro, have a combined capacity of 49 MW.
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