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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

Entergy Arkansas to Acquire Combined-Cycle Plant

LCG, July 13, 2011--Entergy Arkansas, Inc., a subsidiary of Entergy Corporation, announced yesterday its plans to purchase the 620-MW Hot Spring Energy Facility from KGen Power Corporation for $253 million. The purchase agreement is pending regulatory approvals.

The Hot Spring Energy Facility, located about 50 miles southwest of Little Rock, is a combined-cycle gas plant that commenced commercial operations in June 2002. The facility includes two combustion turbines, two supplemental-fired heat recovery steam generators (HRSGs), a chiller system to cool the turbine inlet air in the summer, and one condensing steam turbine generator. In addition, 393-acre site was designed with certain common facilities in place to support a second, 620-MW station.

Entergy stated the acquisition comes at a low cost and without project risks. Furthermore, the gas-fired facility conforms with Entergy's long-term strategic plan to meet the future needs of its customers. The President and Chief Executive Officer of Entergy Arkansas, Inc. stated, "We view this as a sound investment to meet future power demand in Arkansas. Hot Spring is a well-maintained, proven facility in our service area, and it will provide us with reliable, low-cost energy to serve the growing needs of our customers."

The Director of Resource Planning for Entergy Arkansas stated, "Acquiring additional capacity also helps fill the company's generation shortfall at the most economic market price benefiting our customers. All of these combined steps lead to downward pressure on costs to the consumer."

In the Southeast, Entergy is not alone in acquiring modern gas-fired, combined-cycle plants. Last week, the Tennessee Valley Authority (TVA) announced plans to purchase the 968-MW Magnolia Combined Cycle Gas Plant in northern Mississippi from Kelson Limited Partnership. In April, Oglethorpe Power Corporation completed the purchase of two natural gas-fired, combined cycle generating units in Georgia from KGen Power Corporation for a purchase price of approximately $529 million, including working capital and other closing adjustments. The two Murray units represent an aggregate summer planning reserve generating capacity of about 1,220 MW.
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