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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

Kinder Morgan to Fuel Calpine’s Pasadena 2 Plant

LCG, July 6, 2000--Kinder Morgan Inc. said yesterday a subsidiary would provide about three-quarters of the natural gas needed by Calpine Corp.s new Pasadena 2 cogeneration plant in Texas under a contract that will continue through the summer of 2002.Kinder Morgan Texas Pipeline will supply the Calpine plant with 60,000 MMBtu of natural gas per day under the agreement. Kinder Morgan already provides 100 percent of the natural gas Calpine burns at its Pasadena 1 plant.Diana Naylor, a Calpine senior vice president, said her company was pleased with the arrangement. They (Kinder Morgan Texas Pipeline) have provided Calpine with professional and reliableservice in the past and we are confident that they will continue to do so in the future, she said.Richard D. Kinder, chief executive of his company, noted that Natural gas has become the fuel of choice for power generation, and a number of new gas-fired plants are planned to be built in close proximity to our extensive pipeline system during the next few years.
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