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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

Illinois Town's 29-MW Power Plant Under Construction

LCG, Aug. 6, 2003--Geneva, Illinois has received five reciprocating engines from Caterpillar Inc., and is beginning construction of a power plant expected to be operational by January 2004.

The completed plant will be owned and operated by the city, which will use power from the plant during times when demand is high. Mayor Kevin Burns said, "This new power plant will offer residents and businesses of our city a higher quality of life by providing reliable and more affordable power during extreme weather conditions." Geneva is 40 miles west of Chicago.

According to Glen Barton, the chairman and CEO of Caterpillar, the sale of the G16CM34 gas-fired reciprocating engines marks the first such deal for the company. Patten Power Systems, the local dealer for Caterpillar, will provide support during the plant's operation.
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