BlackRock CEO Fink warns data center halt could trigger recession

Larry Fink, chief executive of BlackRock, stated that a moratorium on data center construction in the United States would lead to a recession. The warning came during a CNBC interview on Wednesday, shortly after the asset manager disclosed third-quarter earnings that exceeded expectations. BlackRock shares, ticker BLK, rose approximately 1% in late morning trading.

Fink attributed the potential economic downturn to the heavy reliance of the current economy on capital expenditure for artificial intelligence infrastructure. He noted that significant portions of economic activity are tied to this buildout. The comments arrive as local opposition to data center projects has become a prominent issue in the November 3 midterm elections. Residents in affected areas have raised concerns regarding increased utility costs, water consumption, environmental impact, and the transparency of investment decisions.

While acknowledging public apprehension about the scale of construction, Fink characterized much of the criticism as stemming from misinformation. He emphasized that data centers generate employment across several sectors, including construction labor, physical digital infrastructure, AI compute hardware manufacturing, and energy grid development. Wall Street analysts cited in the report estimate that total AI capital expenditures may surpass $1 trillion in 2027 and reach over $5 trillion by 2030.