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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

Calpine Announces 336 Megawatt Colorado Plant

LCG, March 19, 2001Calpine corp. said Friday that its SkyGen Energy subsidiary would build a 336 megawatt natural gas-fueled peaking plant in Aurora, Colo., to supply power to Xcel Energy, the former Public Service Co. of Colorado, with electricity during periods of high demand.

The plant, which will employ two General Electric combustion turbines, will be located near natural gas pipelines serving the area east of Denver and will have access to existing transmission lines belonging to Xcel.

Tom Ashburn, community service manager for Xcel, said "SkyGen Energy's facility will be a crucial component in helping us meet the power needs of our customers in an economic and efficient manner."

Construction of the Colorado Energy Center is expected to begin during the summer of 2002, with commercial operation starting in 2003. The initial agreement with Xcel is for a term of ten years. Under the agreement, Xcel will have dispatch rights for all of the capacity and energy produced by the facility and will also manage the purchase and delivery of fuel used at the facility.

Calpine said it will manage construction of the project and will own and operate the facility.

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