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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

Reliant Plans 580 Megawatt Arizona Plant

LCG, Sept. 5, 2001--Reliant Energy Wholesale Group said yesterday it plans to build another combined-cycle generating power plant in Arizona near its recently completed Desert Basin facility southeast of Phoenix.

The 580 megawatt plant is scheduled to begin commercial operation in 2004, and will be doubled in size if regional demand for power justifies the expansion. Another 580 megawatts could be added by 2009, the company said.

The new plant, which will be called Signal peak after a nearby landmark, will consist of two natural gas-fueled combustion turbines and one steam turbine spun by a heat recovery steam generator. The steam will be returned to liquid water in an air-cooled condenser which requires only about 300 acre-feet of water per year, Reliant said.

"Signal Peak will be a valuable energy resource that's designed to meet the region's need for electricity while protecting the environment and conserving precious water supplies," said Jack Farley, western region president of the wholesale group.

Reliant Energy Wholesale Group is a unit of Houston-based Reliant Resources Inc.

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