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Daily Update — May 6, 2026

Caution for Offshore Wind; Credit Risks for Data Center Expansion; and Inside BDC Portfolios

Today is Wednesday, May 6, 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.

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Energy Transition & Sustainability

'Party is over' in European offshore wind as developers turn cautious

 

European offshore wind developers are becoming more cautious and selective as financial constraints and supply chain limitations create an environment where potential projects outnumber the capital, equipment and workforce available to build them, Adam Thomsen, chief development officer at Skyborn Renewables, said in an interview with Platts, part of S&P Global Energy.

 

The shift marks a reversal from previous years, when developers competed fiercely in government auctions, writing multibillion-euro checks in some cases for project development rights. Those days are gone, with many countries having increasing difficulty attracting bids. Auctions in major offshore wind markets, including the UK, Germany, the Netherlands and France, have failed recently, prompting a redesign of bidding frameworks.

Data Centers

Affordability Concerns Drive Credit Risks In US Data Center Expansion

 

Rising US electricity prices are prompting concerns about the impact of rapid data center development on energy affordability. Retail rates have risen 38% over the last five years and by as much as 96% in Washington, DC, according to the US Energy Information Administration. These increases have been driven by inflationary costs, increased capital spending on safety, reliability and decarbonization, electrification trends, higher capacity prices, and, in some cases, rising wildfire mitigation costs.

 

Data center expansion may have contributed to increased prices, but it has not been the primary driver so far. However, the perception of a link between data center development and rising electricity prices could heighten local resistance and policy responses, creating potential credit risks for utilities, local governments and data center developers. These dynamics will be important to monitor, particularly in a midterm election year with 36 state gubernatorial elections, according to S&P Global Ratings.

Private Markets

What is actually going on in BDC portfolios?

 

Private debt managers’ dependence on private wealth faced headwinds in the first quarter as investors sought to withdraw billions of dollars from business development companies. Redemption requests from the 12 largest nontraded business development companies (BDCs) averaged 12.1% in the first quarter, well above the typical 5% threshold, according to With Intelligence, a part of S&P Global Market Intelligence.

 

Seven funds opted to gate withdrawals at 5%, with investors being cashed out on a prorated basis, while  Blackstone Private Credit Fund, Oaktree Strategic Credit Fund and Monroe Capital Income Plus honored all requests after redemptions came in slightly above 5%. Overall, the 12 funds, which account for over 80% of nontraded BDC assets, received just over $15 billion in redemption requests in the quarter and honored 53.4% of them.

In case you missed it

  • Frozen chicken imports to the Middle East have been redirected across a wider range of entry points due to restricted access through the Strait of Hormuz. The region relies heavily on imported frozen chicken, with annual volumes exceeding 2 million metric tons. 
  • European wind power output rose about 28% year over year in April while solar generation increased 18% to a monthly record, according to preliminary system data.
  • The US issued new sanctions May 1 targeting the Iranian oil trade, including a measure blocking the Qingdao Haiye Oil Terminal in China's Shandong province for receiving tens of millions of barrels of Iranian crude in 2025.

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