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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

Cinergy to Resume Development of 130 Megawatt Indiana Peaker

LCG, April 25, 2001--Cinergy Capital & Trading Inc., the merchant power unit of utility Cinergy Corp., said yesterday it has received approval from the Indiana Utility Regulatory Commissionfor construction of a 130 megawatt gas-fired electric peaking facility near Cadiz, northeast of Indianapolis.

The commission had halted development of the project in March 2000, but Cinergy said construction would restart "promptly" with the first units scheduled to be on line this July. Total cost of the project will be around $70 million.

Indiana regulators placed several conditions on their order. The facility must be operated only with natural gas and should be landscaped so that its appearance is similar to other non-residential facilities in the area, and Cinergy will have to make sure the plant doesn't cause any problems with its neighbors' well-water.

Cinergy said 50 megawatts of the plant's output will be sold under a 20-year contract to the Wabash Valley Power Association and the balance will be sold into the regional wholesale market.

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