BlackRock CEO Larry Fink has warned that a halt in data center construction could trigger an economic downturn.
“If we have some sort of moratorium in this country, we will be in a recession,” Fink told CNBC on Wednesday, after BlackRock reported better-than-expected third-quarter results on Wednesday. BlackRock was up about 1% in late morning trading.
“A lot of our economy relies on building these investments,” Fink added, referring to the massive investments being made to develop artificial intelligence infrastructure.
Fink’s warning comes as strong local opposition to data center construction has become a key issue in the Nov. 3 midterm elections, as communities face rising utility costs, water consumption, environmental damage and questions about investment transparency.
Although Fink acknowledged his fears about data center construction, he also noted that “most of those fears were due to misinformation.”
The stakes are high. Wall Street analysts estimate that total capital spending on AI could exceed $1 trillion in 2027 and surpass $5 trillion by 2030.
“Data centers are not the problem. They are creating more new jobs than ever,” explained the BlackRock CEO. The scale of investment has created demand for construction workers, physical digital infrastructure, AI hardware and energy infrastructure to secure power to the grid, he said.
Gn bussni
