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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

Constellation Announces New Texas Plant

LCG, Oct. 3, 2000--Constellation Power Source said yesterday it will build an 800 megawatt, combined-cycle power plant in Seguin, Texas, between San Antonio and Austin. Commercial operation of the Rio Nogales Power Project is scheduled for June 2002.

Site clearing for the $340 million project began in July and multiple water sources for the plant are being negotiated, the company said.

Project manager Dan King said the 30-acre Seguin site where the Rio Nogales plant will be built was chosen for a number of reasons, including three natural gas pipelines that already serve the area. In addition, King said, the site includes existing transmission lines that serve the San Antonio and Austin regional markets, the Dallas market to the north, and Houston and Corpus Christi markets to the east. He said the plant will also be able to serve the Lower Colorado River Authority's service area.

Constellation Power Source is a unit of Constellation Energy Group Inc., the holding company formed by the restructuring of Baltimore Gas & Electric Co.

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