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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

Phase 3 of Sweetwater Wind Project Completed

LCG, January 11, 2006--The third phase of the Sweetwater Wind Project achieved full commercial operations on December 30, 2005. The 135-MW expansion consists of ninety, 1.5-MW GE turbines and is located in Nolan County, Texas. The total capacity of the wind farm is now 264 MW.

DKRW Energy LLC of Houston was the lead project developer. Catamount Energy Corp. is an equity investor in the project and a co-developer. Babcock & Brown participated as the financial advisor for the project and as an equity investor and a co-developer in the project. The development and the construction were funded by Babcock & Brown and Catamount. Babcock & Brown will also act as project administrator overseeing the operations and maintenance at the facility.

Phase 2 of the project, which consisted of 61 GE turbines with a capacity of 91.5 MW, was completed nearly a year ago in February 2005. The initial phase consisted of 25 GE turbines and was completed in January 2004.

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