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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 Combined-Cycle Begins Operations

LCG, April 30, 2002--A 550 MW combined-cycle operation has come on-line ahead of schedule.

The Houston, Texas plant, owned by San Jose, California-based Calpine Corp., will sell steam and electricity to LYONDELL-CITGO Refining LP.

According to Calpine, the system, part of the LYONDELL-CITGO's Channel Energy Center, will combust natural gas in turbines that are 40 percent more efficient than older gas-fired generators. Pre-existing operations at Channel Energy Center provided 190 MW, but the recent completion of the combined-cycle project introduced an additional 360 MW.

Channel Energy Center entered operations in July of 2001 and is located along the Houston Ship Channel.

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