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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

El Paso to Check Killer Gas Line This Week

LCG, March 20, 2001El Paso Natural Gas Co. said yesterday that it would conduct a two-day inspection tomorrow and Thursday of the natural gas pipeline that exploded last August near Carlsbad, N.M., killing 12 persons who were camped near the line.

The inspection has been twice delayed as El Paso removed debris left by repair. "We will complete the line cleaning today and begin the inspection on South Mainline on March 21 and 22," a spokeswoman for El Paso Energy Corp. said yesterday.

The South Mainline, which connects a Texas gas basin to California, was repaired following the blast, but has been operating below capacity because of federal restrictions, cutting gas flows to the west by 200 million cubic feet per day. This week's test should be one of the last hurdles before the line can be restored to its full 1.1 billion cubic feet per day capacity.

The El Paso spokeswoman said the inspection process will reduce flows by another 335 million cubic feet per day. Following the test, results will be submitted to the U.S. Office of Pipeline Safety, a division of the Department of Transportation, which will determine whether the South Mainline is safe for regular service.

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