BlackRock CEO Warns Recession Risk if AI Data Center Construction Is Halted

Larry Fink, CEO of BlackRock, warned on Oct 14 that a pause on data center construction would push the U.S. economy into recession. Speaking to CNBC after BlackRock reported better-than-expected third-quarter earnings, Fink said the U.S. economy now relies heavily on the massive expansion of capital spending in AI infrastructure.

Fink noted that data center construction has become a contentious issue in communities and political debates ahead of the Nov 3 midterm elections. He acknowledged concerns about data centers but said most stem from misinformation, arguing that data centers are creating new jobs rather than being the problem.

His remarks underscore how deeply AI infrastructure investment has penetrated the broader economy. Large-scale data center construction has generated strong demand across construction, digital infrastructure, AI computing hardware, and grid energy infrastructure. Wall Street analysts estimate AI capital spending could exceed $1 trillion in 2027 and surpass $5 trillion cumulatively by 2030, meaning any policy disruption could ripple through supply chains, employment, and the energy sector.

BlackRock, the world's largest asset manager, reported better-than-expected third-quarter results earlier that day. Fink said demand for capital is strong across sectors, with AI infrastructure being one of the most representative parts of that wave.