Daily Update — September 4, 2026
Sustainability Around Data Centers; AI Boom or Bubble; and Hedge Fund Trends
Today is Friday, September 4, 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 Expansion
Listen: Sustainable Energy and Data Center Demand
Booming data center demand has raised concerns that hyperscalers and operators would abandon sustainability goals. However, they remain among the largest buyers of renewable power purchase agreements and continue to drive carbon-free energy initiatives, even after three major energy shocks in the last six years.
In this episode of the “Next in Tech” podcast, host Eric Hanselman spoke with S&P Global Energy analyst Tony Lenoir to discuss sustainability around data center resources. Lenoir said that Google, Amazon, Microsoft and Meta remain committed to decarbonizing their energy supply, but rising power demand from their data center facilities has led to setbacks. Hanselman and Lenoir also discussed capital investment timelines and the intermittency of wind and solar energy.
Artificial Intelligence
Listen: BlackRock’s Wei Li: Is there an AI bubble?
In this episode of the “Leaders” podcast, host and S&P Global Ratings Senior Director Joe Cass spoke with BlackRock Global Chief Investment Strategist Wei Li to discuss whether the AI boom is a productivity revolution or a bubble.
According to Li, AI is still in the early build-out phase, which will be followed by broader adoption and productivity gain. "When narratives get ahead of themselves, and arguably at some point last year, that was why we saw a bit of a repricing,” Li said. “You could feel a bit of a bubbly kind of reaction in markets, but that's just the nature of investing in transformative technologies."
Capital Markets
Hedge Fund Trends 2026: Demand Strengthens as Capital Returns
Hedge fund demand has strengthened in 2026, with North America dominating launch activity in the first half. The region accounted for 141 funds in development, the second-largest total since at least the second half of 2020, according to With Intelligence, a part of S&P Global Market Intelligence. Globally, hedge funds recorded a sixth consecutive quarter of net capital inflows in the second quarter, attracting about $6.6 billion, even as several strategies faced redemption pressures in June.
On an asset-weighted basis, hedge funds delivered their best six months since 2009. Firms rebounded from disruption in the Middle East and several equity managers posted notable gains due to AI. Large US public pensions are also moving closer to their hedge fund targets, suggesting further room for growth in institutional allocations, according to With Intelligence.
In case you missed it
- The global reinsurance sector outlook remains stable in 2026, with strong fundamentals offsetting near-term market headwinds, according to S&P Global Ratings.
- Methanol producer Methanex will idle production at its New Zealand plants starting in the first quarter of 2027 amid the country’s tightened natural gas supply.
- Los Angeles County sued State Farm over the alleged mishandling of claims stemming from the 2025 Eaton and Palisades Fires in California.
Upcoming events
- State of the Market: Mining Q2'26 | September 9 (Webinar)
- European Structured Finance Conference 2026 | September 10 (London)
- AI Workflows in Action: Investment Management | September 15 (Webinar)
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