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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

PPL to Build 540 Megawatt Plant Near Chicago

LCG, April 24, 2001PPL Corp. said yesterday it plans to build a 540 megawatt simple-cycle, natural gas-fueled power plant near the University Park suburb of Chicago, at a cost of about $305 million.

"Increased demand for electricity in many areas of the United States is triggering an urgent need fornew generation sources," said William F. Hecht, PPL chief executive.

The plant will be built in an industrial park with close access to natural gas and high-voltage transmission lines. It will use 12 combustion turbines to produce power and will be equipped with advanced emissions reduction equipment, PPL said.

During construction, the plant will provide up to 150 jobs, the company said. Commercial operation is expected to begin by the summer of next year.

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