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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

Wisconsin Utility Plans Peaking Unit

LCG, Jan. 20, 2002--A 52-megawatt Pratt & Whitney FT8® Twinpac™ peaking generator will be purchased and installed in Kaukauna, Wisconsin in spring 2004, according to Wisconsin Public Power Inc. (WPPI), a utility owned by 37 municipalities.

The president and CEO of WPPI, Roy Thilly, said, "This project will provide a low-cost, reliable and environmentally sound electric generating source needed to meet load growth in our member communities." The FT8 turbine is a variant of the JT8D aircraft engine.

The installation will also allow three older diesel units, which provide about 7 megawatts, to be retired. "We are pleased to be working with WPPI and look forward to providing them with exceptional customer service," Ellen Smith, president of Pratt & Whitney Power Systems, stated.
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