Key facts
- BlackRock CEO Larry Fink warned a U.S. data center construction moratorium would cause a recession.
- Fink stated that AI infrastructure spending is crucial for economic growth.
- He called backlash over data centers' environmental impact "misinformation."
- AI capital expenditures are estimated to exceed $1 trillion by 2027.
- A summer survey showed 61% of Americans oppose new data centers in their communities.
BlackRock CEO Larry Fink stated that a U.S. moratorium on data center construction would lead to a recession, emphasizing the sector's critical role in economic growth. Speaking after BlackRock's third-quarter earnings report, Fink argued that the build-out of AI infrastructure is a significant driver of the economy.
Fink pushed back against growing public opposition to data centers, which cite concerns over electricity and water usage, labeling much of the backlash as "misinformation." He insisted that data centers are not the problem, but rather a source of jobs and energy infrastructure demand.
Despite Fink's warnings, public opposition is rising, with a survey indicating 61% of Americans oppose new data centers in their areas. This sentiment has led to real restrictions, including moratoriums and permit pauses in New York and Texas, and limits in various cities. The issue has also become a political talking point, with some politicians campaigning against data centers and AI billionaires funding pro-data center advertisements.