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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

Southeast Chicago Plant Dedicated

LCG, Oct. 18, 2002--A new 350-megawatt peaking plant, the Southeast Chicago Energy Project, is beginning operatons, with a dedication cermony being held today.

The plant, owned by Exelon Corporation and Peoples Energy Corporation consists of eight gas turbines, equipped with dry, low-nitrogen oxide burner controls. The controls will reduce emissions at the plant. The chairman, president and CEO of Peoples Energy, Thomas M. Patrick, said "We are committed to providing Chicago and the region with a clean-burning natural gas-fired electricity. Partnering with Exelon to develop this project helps us deliver on that promise while continuing to provide value to the Midwest energy marketplace."
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