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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 to Build 600 Megawatt Colorado Plant

LCG, March 23, 2001Calpine Corp. yesterday announced plans to build, own and operate a 600 megawatt power plant to be located northeast of Denver, Colo., near the town of Hudson. Construction of the proposed Rocky Mountain Energy Center is scheduled to begin next year with commercial operation penciled in for May 2004.

Calpine said it has an agreement with Xcel Energy Corp. for the former Public Service Co. of Colorado to take up to all 600 megawatts of the plant's output for a period of 10 years. Xcel will manage the purchase and delivery of natural gas fuel for the plant over the term of the agreement.

The facility will consist of two gas-fueled combustion turbines operating in combined-cycle with a single steam turbine and employ advanced emissions control equipment.

Todd Anderson, community service manager for Xcel, said "The facility's location and design support our electrical system's reliability and efforts to provide affordably priced electricity."

Calpine said it will manage all aspects of project development for the new power plant, including engineering and design, construction, and operations. The project will interconnect to the local power grid via transmission lines already serving Xcel.

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