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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

We Energies to Close Pleasant Prairie Coal Plant in 2018

LCG, November 30, 2017--WEC Energy Group announced Tuesday that it will shut down the coal-fired, Pleasant Prairie electric generating facility in the second quarter of 2018. WEC Energy Group's Wisconsin operations include We Energies and Wisconsin Public Service.

The Pleasant Prairie facility, with a net electric generating capacity of 1,190 MW, has been a major source of power in Wisconsin. Its two units were installed in 1980 and 1985. However, low natural gas prices, increased energy delivered from growing wind farms, and minimal growth in demand for electricity have hurt the competitiveness and need for the power plant, which relies on coal from Wyoming's Powder River Basin.

We Energies also stated that it has plans to own and develop 350 MW of solar power by 2020.
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