Fink Warns Data Center Moratorium Could Push US Into Recession

BlackRock chief executive Larry Fink has warned that a U.S. moratorium on data center construction would push the country into recession, according to remarks he made to CNBC on Wednesday, October 14, after BlackRock reported better-than-expected third-quarter earnings. Fink said "so much of our economy is based on the build-out of this capex." He dismissed local opposition over electricity demand, water use and grid strain as "misinformation," adding that "data centers are not the problem."

The remarks come as data centers become a flashpoint before the November 3 midterm elections. Brookings has counted at least 100 localities approving moratoriums as of July, and New York has paused certain permits for up to a year. An Annenberg Public Policy Center survey cited by Decrypt found 61% of Americans oppose new data centers in their area.

Fink argued the buildout supports construction jobs and energy-infrastructure demand. He also said BlackRock has spoken with chipmakers including AMD and Broadcom about bringing more private capital into AI infrastructure. His recession warning is a forecast from Fink, not an official government or central bank assessment.