BlackRock CEO warns data-center freeze could trigger recession ahead of midterms

Larry Fink, chief executive of BlackRock, cautioned that imposing any sort of moratorium on data-center development could plunge the United States into a recession, emphasizing the sector’s centrality to AI capital spending. In remarks following the firm’s third-quarter results, he highlighted how the construction of data facilities drives demand for workers, digital hardware, and energy infrastructure, thereby generating unprecedented employment.

Although he did not dismiss local worries about electricity bills, water consumption and environmental effects, he suggested that much of the backlash stems from misinformation. The controversy is now a key issue in the November 3 midterm elections, as communities across the country voice concerns over the growing electricity load from facilities built by companies such as Amazon, Google, Microsoft and Meta. Analysts project AI-related capital expenditures could exceed $1 trillion by 2027 and surpass $5 trillion by 2030, underscoring the economic stakes of the debate.