BlackRock’s CEO warns that a halt in data center building might lead to a recession

BlackRock CEO Larry Fink stated on Wednesday that the U.S. would encounter an economic downturn if a halt on data centers was enacted. He contended that building these contentious facilities «is not the issue,» despite the growing public skepticism concerning data centers and their effects.

In a CNBC interview after BlackRock’s third-quarter results were revealed, Fink mentioned that «some type of moratorium in this country» could lead the U.S. into a recession, highlighting that a large part of the economy depends on investments in data centers.

According to a Pew Research Center survey, Americans are growing more critical of data centers and their possible economic and environmental effects. At least 49% of people consider these facilities to be mostly harmful to the environment, energy expenses for households, and the living standards of local residents.

Fink argued that the majority of concerns related to data center construction arise from «misleading information,» stating, «Data centers are not an issue.»

Fink also emphasized the importance of data centers in generating jobs. Mentioning that they will increase the need for construction labor, energy infrastructure, and computer hardware for artificial intelligence.

Don’t overlook: The AI data center boom is sidelining property owners.

BlackRock stock increased modestly to $1,067 per share following the company’s third-quarter results, which surpassed expectations, revealing a net profit of $2.6 billion. Shares of the investment management behemoth have fallen 0.5% since the beginning of the year.

Data centers constitute the essential infrastructure supporting the surge in artificial intelligence and cloud computing