TLDR
- BlackRock CEO Larry Fink said halting AI data center construction could push the U.S. into a recession.
- Fink said the $40 trillion national debt is having a “serious” effect on credit demand.
- A Pew survey found 54% of adults now see data centers as mostly harmful to the environment.
- BlackRock reported $205 billion in quarterly net inflows and $15.5 trillion in assets.
- Core inflation beat forecasts, and analysts expect a Federal Reserve rate hike by the end of 2026.
BlackRock CEO Larry Fink says the U.S. could slip into a recession if construction of AI data centers is stopped. He shared the view in a CNBC interview on October 14.
Fink said “a moratorium of some sort in this country” would lead to a downturn. He said much of the economy depends on that spending.
“So much of our economy is based on the buildout of this capex,” he said. Capex is money companies spend on buildings, machinery and equipment.
No nationwide moratorium has been announced. The interview also did not show that a recession has started.
Fink defends data centers as public opposition grows
Fink called much of the criticism of data centers “misinformation.” “Data centers are not the problem,” he said.
He pointed to jobs in construction, power projects and computer hardware manufacturing. He did not announce any deal with lawmakers on limits.
A Pew Research Center survey shows concern is rising. In August, 54% of U.S. adults called data centers mostly harmful to the environment, up from 39% in January.
Half of those surveyed said data centers hurt household energy costs, up from 38%. The survey included 10,548 adults.
Debt, earnings and market pressure
Fink also warned about the $40 trillion national debt. He said it was about $8 trillion in 2000.
“We grew $32 trillion in 26 years,” he said. He said bigger government bond auctions are raising demand for credit.
He said the government and private companies are competing for money. Companies need large sums to fund AI projects.
BlackRock reported third quarter results on October 14. The firm took in $205 billion in net inflows and now manages about $15.5 trillion.
Revenue rose 19% to about $7.8 billion. Adjusted earnings per share rose 38% to $15.93.
Moody’s estimates U.S. data center spending could reach about $700 billion in 2026. That forecast depends on financing costs, demand and construction schedules.
Markets were under pressure as Fink spoke. Core inflation came in above forecasts, and analysts expect the Federal Reserve to raise rates by at least 25 basis points before the end of 2026.
Bitcoin traded near $81,200 on October 15 after falling to a low of $80,400. Fink did not predict a Bitcoin price in his comments.
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