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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 Buys 750 Megawatt California Project

LCG, March 22, 2001Calpine Corp. said yesterday it has purchased the development rights for a 750 megawatt natural gas-fired merchant power plant near Bakersfield, Calif., from Enron North America for an undisclosed sum.

Calpine said the $500 million Pastoria Energy Center was licensed by the California Energy Commission last December and construction is scheduled to begin this summer. Commercial operation is expected to begin in time for the summer of 2003.

The facility will be built on property leased from the Tejon Ranch Corp. about 30 miles south of Bakersfield. Calpine said construction will require more than 800 workers during peak building periods and the plant will provide up to 25 permanent jobs once complete.

Calpine will manage all aspects of the project including engineering and design, construction, fuel supply, operations and power marketing.

Calpine, which already has 1,300 megawatts of installed capacity in gas-fired and geothermal plants in California, said it has another 2,100 megawatts under construction in an around the state and 3,800 megawatts more under development.

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