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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 Puts 460 Megawatts On-line in Wisconsin

LCG, Aug. 8, 2001--Calpine Corp. said this morning that its 460 megawatt RockGen EnergyCenter is in full production, providing electricity to Wisconsin Power & Light Co. under a seven-year agreement.

Calpine said the peaking plant's production will allow WP&L to maintain sufficient generating ability to meet its peak electrical load, while preserving additional resources to provide a reserve margin. When WP&L does not call on the plant's output, Calpine will sell electricity to the Wisconsin wholesale power market.

"By teaming with Wisconsin Power & Light to provide a native source of electric generation, RockGen will enhance the state's electric reliability and provide Wisconsin consumers with needed electricity in times of peak demand, especially during the warm summer months," said Calpine's Andy Kellen, project director of RockGen.

RockGen is a natural gas-fueled facility operating in simple-cycle configuration, Calpine noted, adding that the Wisconsin power market is primarily comprised of old, coal-fired power plants and demands of the Clean Air Act and other environmental issues related to coal-fired generation are forcingsuppliers to shift to cleaner energy resources, which Calpine is happy to provide.

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