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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

Dynegy to Expand North Texas Gas Processing

LCG, Aug. 7, 2001--Dynegy Inc. said this morning that it plans to more than double its Chico, Texas, natural gas processing capacity by building a second, 150 million cubic feet per day facility adjacent to its existing 100 million cubic feet per day plant.

The company said the new plant is in response to processing opportunities resulting from increased drilling and production activity of the Barnett Shale formation in North Texas. New fracturing techniques have enabled producers to tap previously undeveloped gas reserves in the region.

Dynegy, through long-term contracts with producers, has the right to gather, compress and process gas volumes from more than 100,000 acres of leases in the Barnett Shale. Commercial operation of the new facility is expected to begin during the second quarter of next year.

"This project demonstrates our ability to capture and execute on incremental growth opportunities in one of the key producing regions of the country," said Steve Furbacher, president of Dynegy's Midstream Services unit. "In addition to enhancing our strategic position in the region, this project also demonstrates our ability to optimize existing assets."

Dynegy said the new Chico gas processing plant will create about 150 new construction jobs. Once in full commercial operation, it will be operated by existing Chico personnel.

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