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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

Prices for Low-Sulfur Coal Hit Record Highs

LCG, March 6, 2001--The price of Powder River Basin coal has more than doubled since the start of the new year, Energy Argus Inc. said yesterday. The company said its Coal Daily publication shows the surge in its weekly price index.

Users are now paying $10.50 per ton for Powder River Basin coal, an increase of $5.95 per ton from the beginning of the year when consumers paid only $4.55 per ton. In comparison, the price of that coal in 2000 never moved above $4.65 per ton and stayed in a narrow 55 cents price range the entire year, Coal Daily reported.

Despite record production in 2000 and predicted increases in 2001, Energy Argus believes it is unlikely that more coal will become available this year for spot purchases. Utilities are increasingly looking to the Powder River Basin as a source of coal as they try to meet state and federal clean air requirements. A proposed bill in the U.S. Senate will put even more emphasis on clean burning low-sulfur coal, Energy Argus noted.

The Powder River Basin stretches from northern Wyoming into southern Montana.

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