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watch nowVIDEO04:05BlackRock’s Larry Fink: We are seeing demand for capital in all different segments of the economySquawk on the Street
BlackRock CEO Larry Fink warned that a halt to data center construction could trigger an economic slowdown.
“If we have a moratorium of some sort in this country, we will be in a recession,” Fink told CNBC Wednesday, after BlackRock reported better-than-expected third-quarter earnings early Wednesday. BlackRock advanced about 1% in late morning trading.
“So much of our economy is based on the buildout of this capex,” Fink added, referring to the massive investments made to develop artificial intelligence infrastructure.
Fink’s warning comes as strong, local opposition to data center construction has emerged as a key issue in the Nov. 3 midterm elections, as communities struggle with rising utility costs, water use, environmental damage and questions over investment transparency.
While Fink acknowledged fears about the data center buildout, he also noted “most of it is on misinformation.”
The stakes are high. Wall Street analysts estimate total AI capital expenditures could climb above $1 trillion in 2027 and total in excess of $5 trillion by 2030.
“Data centers are not the problem. They’re creating more new jobs than ever before,” the BlackRock CEO explained. The scale of investment has created demand for construction workers, physical digital infrastructure, AI compute hardware and energy infrastructure to secure grid power, he said.
