Fink Says Data Center Halt Could Push U.S. Into Recession
BlackRock’s CEO tied the risk of a slowdown to AI infrastructure spending as local opposition to data center projects grows.
Key takeaways
- Larry Fink warned a U.S. data center construction moratorium could trigger a recession.
- Wall Street analysts estimate AI capital spending could exceed $1 trillion in 2027.
BlackRock CEO Larry Fink warned Wednesday that a moratorium on data center construction in the United States could trigger a recession. He said much of the economy depends on investment in AI infrastructure.
Fink spoke after BlackRock reported better-than-expected third-quarter earnings. As of 15:39 UTC, BlackRock shares traded at $1,068.90, up 0.26% since the previous close.
Opposition to data center projects has become an issue in the Nov. 3 midterm elections, amid concerns about utility costs, water use, environmental damage and investment transparency. Fink acknowledged those concerns but said most were based on misinformation.
Wall Street analysts estimate AI capital spending could exceed $1 trillion in 2027 and $5 trillion by 2030. Fink said data center investment is creating demand for construction workers, computing hardware and energy infrastructure.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
