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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

APS Dedicates 90-MW Wind Farm Project in New Mexico

LCG, May 15, 2007--Arizona Public Service Co. (APS) and Babcock & Brown last week dedicated the Aragonne Mesa Wind Project, a 90-MW wind farm located in eastern New Mexico. The project significantly increases APS' renewable portfolio from 16 MW to 106 MW.

The Aragonne Mesa Wind Project includes 90 wind turbines, each with a generating capacity of 1 MW. To connect the wind farm to the interconnect substation, over 35 miles of transmission lines were installed. The project was constructed by Babcock & Brown, which will operate the facility. APS has contracted to buy all the power it produces. The project initially began delivering electricity to the grid in December 2006.

The purchase power agreement (PPA) between APS and Babcock & Brown was approved by the Arizona Corporation Commission.

Arizona's Renewable Energy Standard (RES) requires APS and other regulated utilities to provide fifteen percent of electric supplies from renewable resources by 2025. The Arizona Corporation Commission (ACC) adopted final RES rules on November 14, 2006.

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