BlackRock CEO Larry Fink warned Wednesday that a moratorium on U.S. data center construction could trigger a recession, citing the sector's outsized importance to economic growth.
Speaking on CNBC, Fink said "a moratorium of some sort in this country" on data center buildouts would result in a recession, commonly defined as two consecutive quarters of shrinking economic output. Data centers—the large facilities that house computers powering artificial intelligence—have become central to capital spending plans across the country.
"So much of our economy is based on the buildout of this capex," Fink said.
Moody's estimates U.S. data center capital spending will reach $700 billion this year, rising to between $2.4 trillion and $2.48 trillion through 2030. Globally, spending is expected to reach $7 trillion by the end of the decade.
Public concern about data centers has grown. A Pew Research Center survey found that at least 49% of Americans say data centers are mostly bad for the environment, home energy costs, and quality of life in nearby communities. Fink countered that most concerns about data center buildouts constitute "misinformation," highlighting the sector's job creation in construction, energy infrastructure, and AI hardware.
Debt concerns
Fink also raised alarm about U.S. government borrowing. The national debt has grown from $8 trillion in 2000 to $40 trillion in 2026—an increase of $32 trillion in 26 years, according to Fink.
"U.S. deficits are starting to have a serious impact," he said, noting that larger bond auctions reflect increased government demand for credit. Fink called for unlocking private capital to achieve 3% economic growth.
BlackRock reported solid third-quarter results, with net inflows of $205 billion and revenue rising 19%. Adjusted earnings per share increased 38% year-over-year, and operating margin reached 47.8%.
