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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

PSEG's Bethlehem Energy Center Commences Operations

LCG, July 19, 2005--Commercial operation of PSEG Power's new Bethlehem Energy Center began yesterday. The gas-fired power plant is located along the Hudson River, three miles south of Albany, New York and is built on the site of the Albany Steam Station, which was retired in February.

The Bethlehem Energy Center is a combined-cycle power plant with a generating capacity of 750 MW that is based upon the output from a GE Frame 7F system. Construction on the plant, acquired from Niagara Mohawk, began in mid-2002.

The new, $500 million plant attracted support from environmental organizations because of its design. The plant will significantly reduce air emissions relative to the old, 376 MW, oil-fired plant. The new plant employs a closed-loop cooling system that will considerably reduce water consumption from the Hudson River.

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