BlackRock's Larry Fink warns a data center moratorium could trigger a recession

Key points

• BlackRock CEO Larry Fink warned that a data center construction moratorium could cause a recession.
• Fink said much of the economy depends on AI infrastructure capital expenditures.
• Local opposition to data centers is a key issue in the Nov. 3 midterm elections.

BlackRock CEO Larry Fink warned on Wednesday that stopping data center construction could push the economy into a recession. He made the comments to CNBC after BlackRock reported better-than-expected third-quarter earnings earlier that day. BlackRock shares rose about 1% in late morning trading.

Fink's warning on construction halt

Fink said a moratorium on data center building would lead to a recession. He pointed to the large investments in artificial intelligence infrastructure as a major part of the economy. He also said most fears about the buildout are based on misinformation.

He argued that data centers are not the problem and are creating more new jobs than ever. He said the investment scale has increased demand for construction workers, digital infrastructure, AI compute hardware and energy infrastructure for grid power.

If we have a moratorium of some sort in this country, we will be in a recession

— Larry Fink

Political and financial stakes

Local opposition to data center construction has become a key issue in the Nov. 3 midterm elections. Communities are concerned about rising utility costs, water use, environmental damage and investment transparency.

Wall Street analysts estimate total AI capital expenditures could exceed $1 trillion in 2027 and surpass $5 trillion by 2030.