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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

Calpine to Buy Otay Mesa Project from PG&E Unit

LCG, Dec. 19, 2000--Calpine Corp. and PG&E Corp. announced yesterday that they have reached agreement for Calpine to acquire the 500 megawatt Otay Mesa Generating Project in San Diego County.

Under the terms of the agreement, Calpine will build, own and operate the merchant power plant and PG&E's National Energy Group will contract for up to 250 megawatts of the project's output. The two companies said they were committed to bringing the plant on-line as soon as possible -- at least by the summer of 2003.

"The Otay Mesa Generating Project will be the first new power plant built in San Diego County inalmost 30 years," said Thomas B. King, president and chief operating officer of the PG&E unit's west region. "As we saw last summer, when a shortage in generating capacity led to high prices for consumers, there is a clear need for new generating capacity in the region."

The plant will be built within a 46-acre parcel located on Otay Mesa, about a mile and a half from the Mexican border. The project is in the final stages of review by the California Energy Commission, which is expected to decide in early 2001 whether to issue a license for construction. Construction is expected to begin in the third quarter of next year, unless the commission decides its power isn't needed.

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