In pic: BlackRock CEO Larry Fink
He also pushed back against criticism of the industry, saying that “most of it is on misinformation.” “Data centers are not the problem. Residents have raised concerns about rising household electricity costs, water consumption and the environmental effects of large facilities. A Pew Research Center poll published last month found that 50% of Americans viewed data centers as “mostly bad” for home energy costs. Fink’s position contrasts with residents’ concerns that these developments’ economic benefits may not outweigh local costs. JPMorgan Chase CEO Jamie Dimon has also backed AI development while advising technology companies to build data centers “where they’re wanted.” Fink has consistently argued that the US should accelerate AI infrastructure development. Speaking at the Milken Institute Global Conference in May, he said, “I don’t believe we’re moving fast enough,” while dismissing concerns about an AI bubble. “There is not an AI bubble.
Fink argued that data center development supports employment across construction, computing hardware and energy infrastructure. They’re creating more new jobs than ever before,” the BlackRock CEO explained. His comments come as technology companies and investors continue committing large funds for AI infrastructure, including computing facilities and the power systems needed to operate them. Opposition to data center construction has become a political issue in several US communities ahead of the midterm elections. There is the opposite. We have supply shortages. Demand is growing much faster than anyone has ever anticipated — and this is just a U.S. phenomenon,” he added.
However, the IMF warned that energy supply constraints and uneven gains from AI investment could put global economic resilience under pressure. Fink has separately raised concerns about US national debt, which crossed $40 trillion in August.
His remarks come as opposition to data center projects gains attention ahead of the November 3 midterm elections, with communities raising concerns about electricity bills, water consumption and environmental damage. “If we have a moratorium of some sort in this country, we will be in a recession,” Fink told CNBC after BlackRock reported better-than-expected third-quarter earnings. “So much of our economy is based on the buildout of this capex,” he added, referring to capital expenditure on AI infrastructure. Fink has also argued that expanding computing capacity could make AI more widely accessible. ” The faster we can build out more capacity, the more we can democratise and make it available for everyone,” he said last month at a financial discussion in Canada. The International Monetary Fund (IMF) has recently projected that the US economy would grow 2.3% in both 2026 and 2027, indicating continued growth rather than a forecast recession. BlackRock CEO Larry Fink has warned Americans about a recession. Fink has cautioned that a halt to data center construction in the US could push the country into a recession. He also noted that the country’s economy increasingly depends on investments in artificial intelligence (AI) infrastructure. He argued that the government’s growing borrowing needs could affect credit demand, while private investment remains important for economic expansion. You use AI every day. Now get your AI Quotient. Take the AIQ test.
His comments come amid projections that AI-related capital expenditure could exceed $1 trillion in 2027.
He said a significant pause in construction could affect the wider economy, as spending on data centers supports jobs, hardware manufacturing and energy infrastructure. Speaking to CNBC, Fink defended the industry’s expansion while acknowledging public concerns about its impact.