BlackRock CEO Fink Warns US Data Center Construction Pause Will Lead to Economic Recession

BlackRock CEO Larry Fink stated in an interview with CNBC that a pause in data center construction in the United States would lead to an economic recession. He pointed out that the US economy relies on capital expenditure expansion, and data centers provide computing power for artificial intelligence. Fink dismissed environmental concerns regarding data centers, claiming that most of them are misinformation, and emphasized the demand for labor in construction, energy infrastructure, and AI computing hardware. A Pew Research Center survey showed that 49% of Americans believe data centers are detrimental to the environment and quality of life. Moody's predicts that capital expenditures for US data centers will reach $700 billion this year, accumulating to $2.4 trillion to $2.48 trillion by 2030, with a global total reaching $7 trillion by the end of this decade. Fink also warned about the US fiscal deficit, stating that national debt has risen from $8 trillion in 2000 to $40 trillion by 2026, an increase of $32 trillion, affecting credit demand. He believes that private capital needs to be unleashed to drive the US economy to achieve a 3% growth rate. BlackRock reported a net inflow of $205 billion in the third quarter, a revenue growth of 19%, and a 38% year-on-year increase in adjusted earnings per share, with an operating profit margin rising to 47.8%.

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