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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

Conversion of Coal-fired Plant Near Completion

LCG, Apr. 21, 2003--The shutdown of the coal-burning part of the Noblesville power plant in Indiana in late February will be followed in June by the start-up of three new gas-fired combustion turbines, according to Cinergy Corp.

The plant was rated at 90 megawatts previously, and with the operation of the gas turbines, will have a nominal capacity of 300 megawatts. The turbines from the coal plant will be run by steam created by the new turbines. Emissions will be reduced by 94 percent, PSI Energy Inc., the Cinergy subsidiary responsible for the conversion, said.

The same firm that designed the original NOblesville plant, Sargent & Lundy, has also done the engineering work for the current installation. It is thought that the facility will produce power for about half the year, for peak demand. The increased efficiency and reduced emissions may aid PSI Energy in reaching a final agreement with the Environmental Protection Agency over emission limits to accompany capacity expansion. Hamilton County will benefit from the new turbines, as its reserve margin has been as low as 1 percent in the past few years.
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