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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 Acquires Combustion Turbine Firm

LCG, Dec. 20, 2000--Calpine Corp. took a step yesterday in providing support for its growing fleet of combustion turbines by acquiring Boca Raton, Fla.-based Power Systems Mfg. LLC, a firm engaged in combustion turbine component engineering, design and manufacturing.

Calpine said it had agreed to pay $43 million for Power Systems, $10.7 million in Calpine stock and $32.2 million in cash which will be paid in five equal installments beginning January 2002. The cash payments may be modified if Power Systems doesn't perform as expected.

Tom Mason, Calpine's executive vice president for operations, said the acquisition will "significantly strengthen" his company's ability to operate and maintain its fleet of combustion turbines. He pointed out that "Over the next few years, Calpine will become the owner and operator of the world's largest fleet of natural gas-fired power plants."

Power Systems specializes in the design and manufacturing of turbine hot section blades, vanes, combustors and low emissions combustion components, and Thomas Churbuck, its president, said those capabilities "are an excellent match for Calpine's North American energy initiative."

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