Daily Update — March 10, 2025
The Significance of US LNG; Datacenter Implications of DeepSeek; and Canada’s Faceoff on Trade
Today is Monday, March 10, 2025, 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 & Commodities
Major New US Industry at a Crossroads: A US LNG Impact Study – Phase 2
Phase 1 of this study examined the rise of the US LNG industry, while Phase 2 explores the environmental impact of continued LNG development, the effects the industry has on the US economy and the potential benefits of infrastructure debottlenecking across the value chain.
One of the central findings of Phase 2 shows that higher US LNG exports lead to lower overall global emissions by displacing the fuels that output more greenhouse gases. The findings suggest that US LNG exports could contribute an additional $1.3 trillion to US GDP by 2040, with notable impacts extending beyond the primary producing states. Exports could also address the need for infrastructure improvements, particularly in the Northeast.
Learn more about LNG Market Insights from S&P Global Commodity Insights.
Artificial Intelligence
Potential Impacts of DeepSeek on Datacenters and Energy Demand
The launch of ChatGPT in November 2022 and the generative AI boom have led to rapid growth in the number of planned datacenters, with builders requesting power feeds from utilities throughout the US at a level not seen before. In mid-2023, a Chinese AI lab — Hangzhou DeepSeek Artificial Intelligence — started developing code-generation and large language models using fewer and lower-powered graphics chips. DeepSeek’s development cost less than other GenAI models, which has led to the belief that less energy may be required to power LLMs than previously anticipated. The question now is whether many of the planned datacenters will be needed and if the demand for energy from utilities will decrease.
Global Trade
The Decisive | Season 3 Ep. 9 - Economic Angst: Canada's Faceoff on Trade
In this episode of “The Decisive” podcast, host Kristen Hallam interviews Arlene Kish, economics director at S&P Global Market Intelligence, about the outlook for the Canadian economy and the potential impact of US and reciprocal Canadian tariffs.
According to the discussion, tariffs are not expected to cause a sudden economic shock like COVID-19, but they could structurally change how the economy operates. Kish also anticipates Canada and other affected countries to be worse off.
Learn more about additional economic impacts from the tariffs at S&P Global Market Intelligence’s Insurance Landscape in Trump 2.0 Era: Economics, Environment & Trade event.
In case you missed it
- Sovereign Debt 2025: Commercial Debt Will Reach A New Record High Of $77 Trillion: S&P Global Ratings estimates sovereigns' long-term borrowing will reach $12.3 trillion in 2025, continuing the steady increase of recent years, fueled by high fiscal deficits and spending pressures, including on defense.
- An Index Approach to Fossil Fuel Reserves Divestment: Spotlight on the New S&P/TSX Composite Fossil Fuel Reserves Free Index: This index measures the performance of companies in their respective underlying benchmarks that do not own fossil fuel reserves. As such, these indexes may be considered by investors who seek benchmarks to reflect a strategy that divests from fossil fuel reserves.
- European Building Materials Issuers Could Withstand Potential US Tariffs: The effects of potential US tariffs on European building materials issuers would be minor. This is particularly the case in heavy industry, where cross-continental trade is limited.
Upcoming events
- World Petrochemical Conference | March 17–21 (In-person: Houston)
- Talk to the Specialists - An AI-fueled resurgence story – US datacenters and nuclear energy outlook | March 18 (Webinar)
- The 2024 Top Banks & Credit Unions Ranking Release Live | March 18 (Webinar)
Content Type