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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 Explores 1,000 Megawatt Fresno Plant

LCG, May 9, 2001Calpine Corp. and officials of Fresno, Calif., are in discussions concerning a 1,000 megawatt power plant the company is proposing to build in the farming center in California's Central Valley

Fresno City Council President Henry Perea said yesterday that Calpine was talking about building the big natural gas-fueled power plant within two and a half years at a cost of $500 million, but was unable to offer other details.

Katherine Potter, a spokeswoman for Calpine, said the company was looking at several Central Valley sites and acknowledged that a location in Fresno "looks promising." She said Calpine has its eye on the valley because, next to Silicon Valley, the need for additional sources of power is more acute than anywhere else in the state.

California agriculture, the most bountiful in the nation, runs on pumped water, and the pumps are powered by electricity.

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