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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

Indiana Plant Moving Ahead

LCG, Apr. 11, 2002--Allegheny Energy Supply, a unit of Allegheny Energy Inc., has announced that construction of a 630-megawatt, combined-cycle, gas-fired power plant is scheduled to begin later this month.

According to Allegheny Energy Supply president Michael Morrell, "the output from this facility will give us additional generating capacity in the Midwest to complement the 1,710 megawatts we already own in Indiana, Illinois and Tennessee." The plant is to be located in Olive Township, in St. Joseph County. Operations are scheduled to begin in mid-2004.

Black & Veatch Construction, Inc. will serve as turnkey contractor for the project.
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