Data Center Growth Could Drive 7.3% Surge in Natural Gas Power

The U.S. Energy Information Administration (EIA) reports that surging electricity demand, primarily driven by data center expansion and industrial growth, could significantly increase fossil fuel power generation through 2027. In a high-demand scenario, incremental power needs would likely be met by natural gas- and coal-fired plants, as generating capacity remains fixed in the short term. Consequently, natural gas generation could rise by 7.3%, while the projected decline of coal would slow significantly. This increased demand is expected to raise wholesale electricity prices nationwide.

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