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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

California Town's 43-MW Power Plant Operational

LCG, Aug. 18, 2003--The Agua Mansa Power Plant, built for the city of Colton, Ca., by energy services firm NORESCO, has been completed, and is intended to "stabilize [the town's] power supply costs, while ensuring reliability," Daryl Parrish, the city manager, said.

The 43-megawatt plant consists of a General Electric LM 600PC Sprint turbine, which will operate in simple-cycle, burning natural gas. City officials decided to build Agua Mansa to lessen exposure to power market price volatility. Colton's power purchase agreements were also nearing their end.

The financial capital for the plant came through the issue of municipal bonds by the city's financing authority.
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