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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

Wärtsilä to Supply the Engineering and Equipment to East Kentucky Power Cooperative for 217-MW Power Plant

LCG, August 27, 2025--Wärtsilä Energy announced yesterday an agreement with East Kentucky Power Cooperative (EKPC) to supply the engineering and equipment for a 217-MW power plant to be constructed in Liberty, Kentucky. The Wärtsilä equipment is scheduled for delivery in mid-2027, and the plant is expected to be commissioned in early 2028.

The new electric generating facility will include 12 Wärtsilä 50DF dual-fuel engines. According to Wartsila, the Wärtsilä 50DF dual-fuel engine is a four-stroke engine generating set that allows instant switching to alternative fuels, as well as fast-starting capability that enables rapid response to balance the system. The engines will operate primarily on natural gas fuel but can switch to alternative fuels should there be interruptions to the supply of natural gas. The dual-fuel engines provide enhanced fuel flexibility that is especially valuable during extreme cold winters, when natural gas availability may be constrained due to regional high gas demands and/or low gas production caused by wells freezing. The facility is estimated to operate for approximately 5,000 hours annually, providing grid balancing power, additional grid capacity, and helping EKPC provide reliable power to its customers.

The Vice President, Americas at Wärtsilä Energy stated, "We are delighted to support EKPC’s energy initiative. Our experience and broad scope of capabilities have formed the basis of this project, which will be one of the largest Wärtsilä dual-fuel plants installed in the United States."
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