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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 Plans 890 Megawatt Tennessee Plant

LCG, July 20, 2000--Calpine corp. said yesterday it will develop, build and own a $430 million, 890 megawatt natural gas-fired, combined cycle power plant in Haywood County, Tenn. When completed in mid-2004, the facility will interconnect with the Tennessee Valley Authority system.

Bob Alff, a Calpine senior vice president, said "We are very pleased to announce our first Calpinedevelopment project in the State of Tennessee The Haywood Energy Center is ideally located relative to high-capacity natural gas and electric transmission interconnections, and has excellent access to multiple load centers throughout the dynamic southeastern power market."

The new plant will produce around 770 megawatts and have the capability to generate an additional 120 megawatts during periods of peak demand. It will employ Siemens-Westinghouse combustion turbines in a three-on-one combined cycle configuration and will be equipped with advanced emissions control systems.

John Sharpe, Haywood County Executive, welcomed Calpine to Hatchie River country. "This type of project represents an excellent economic development opportunity for our region, and we are verypleased that Calpine has chosen to do business here. We extend them a warm welcome and lookforward to a successful relationship."

Calpine has three other projects under development that will hook up to TVAs system, one in Lowndes County, Miss., and two in Morgan County, Ala. Including Haywood, Calpine's combined TVA-area development effort represents more than 2,900 megawatts of generating capacity.

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