BlackRock's Larry Fink Warns Data Center Slowdown Could Trigger U.S. Recession Amid AI Boom

Data centers key to U.S. economy, BlackRock's CEO says

Larry Fink, CEO of BlackRock, warned that stopping the construction of data centers across the United States could trigger a recession. He made the comments during a CNBC interview on Wednesday.

Fink specifically said "a moratorium of some sort" on data center buildouts would put the U.S. in a recession. A recession is typically defined as two consecutive quarters of shrinking economic output.

Data centers are large buildings filled with computers that power artificial intelligence. Companies are investing heavily in them to support the growing demand for AI computing.

The numbers behind the boom

• Moody's estimates U.S. data center capital spending will reach $700 billion this year.
• Spending is projected to grow to between $2.4 trillion and $2.48 trillion through 2030.
• Globally, data center spending is expected to reach $7 trillion by the end of the decade.
• The U.S. national debt has risen from $8 trillion in 2000 to $40 trillion in 2026.

Public concerns meet executive pushback

A Pew Research Center survey found that at least 49% of Americans believe data centers harm the environment, increase home energy costs, and reduce the quality of life for nearby residents.

Fink pushed back against those concerns, calling much of the fear "misinformation." He argued that data centers are not the problem and highlighted the jobs they create, including demand for construction workers, energy infrastructure development, and AI hardware.

Government borrowing adds pressure

Fink also raised alarms about the growing national debt. He noted that U.S. deficits are beginning to have a serious impact on the economy.

"We grew $32 trillion in 26 years," Fink said. "That's a massive impact on demand for credit. The government is demanding more and more credit, and bond auctions are getting larger and larger."