Daily Update — March 26, 2026
Data Center Power Demand; Redrawing Global Trade Flows; and Higher Inflationary Pressures
Today is Thursday, March 26, 2026, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Sustainability Insights: Behind The Shades: Data Centers
Global spending on data center construction could increase to about $280 billion in 2026 and $330 billion in 2027, according to S&P Global Market Intelligence 451 Research. The accompanying increase in energy demand could significantly delay the shift from fossil fuels, as natural gas and coal are projected to meet this demand. Data centers accounted for 1.5% of global electricity consumption in 2024, according to the International Energy Agency, but S&P Global Ratings expects this to increase sharply. Power demand will nearly double from 2024 to 2030, reaching 382 gigawatts of built-out capacity by 2030, according to S&P Global Market Intelligence. Much of this growth will be in the US, which is forecast to account for 45% of global data center power demand by 2030, up from 40% currently.
The accelerated demand will test transmission and distribution infrastructure and challenge the decarbonization commitments of utilities and power generators. Power producers in locations with limited excess electricity will be particularly vulnerable, and limited available renewable power generation capacity may pose significant challenges, even in countries where demand spikes may be smaller compared with the US.
Global Trade
Listen: War, energy security, and the redrawing of global trade flows
The effective closure of the Strait of Hormuz was long considered one of the energy market's great hypotheticals — until it became a reality. In this special CERAWeek episode of the “Energy Evolution” podcast, S&P Global Energy President Dave Ernsberger joined host Eklavya Gupte to examine what may be the most significant energy supply disruption ever and how it's forcing a fundamental redrawing of the global energy map. With about 20% of the world's oil and LNG usually passing through this strait, the impact has been asymmetrical and severe: India faces LPG shortages, Asian refiners are experiencing reduced profitability and fuel supplies are tightening sharply.
The conversation also explores how this crisis is accelerating a structural shift in energy markets, particularly in Asia-Pacific, where the energy trifecta of affordability, security and sustainability has been upended. Ernsberger also discussed how the conflict is intersecting with the AI and data center boom, creating widespread inflationary pressures.
Economy
Inflation spike and growth slump signalled as flash PMI tracks war impact in March
The UK economy has stalled and experienced sharp inflation in March due to the war in the Middle East. Output growth across manufacturing and services has slowed significantly as companies attribute lost business to heightened risk aversion among customers, surging price pressures, higher interest rates, or travel and supply chain disruptions.
Inflationary pressures have surged due to rising energy prices and fractured supply chains. Growing costs in the manufacturing sector were especially severe, marking the sharpest increase since the depreciation of sterling following Black Wednesday in 1992. The full impact on inflation and economic growth depends not just on the duration of the war, but on the length of disruptions to energy markets and shipping, though Purchasing Managers’ Index data in March shows how downside growth risks and upside inflation risks have already materialized.
In case you missed it
- US cattle placed in feedlots totaled 1.611 million head in February, up 3.7% year over year from 1.554 million head, the US Agriculture Department said in its latest “Cattle on Feed” report.
- Shale oil production in the US has likely plateaued over the past six to 12 months, depending on how the Middle East war develops, Chevron CEO Mike Wirth said March 23.
- Indexes for US equity real estate investment trusts continued to decline alongside the broader stock market during the week ended March 20, marking the third consecutive week of falling REIT share prices.
Upcoming events
- US Tax Reporting & Withholding: Trends, Technology, and Compliance Strategies for 2026 | March 31 (Webinar)
- Global Credit Conditions Q2 2026: Narrow Strait, Broad Implications | April 1 (Webinar)
- Navigating the Chaos of Sports Media Rights Fragmentation | April 2 (Webinar)