BlackRock CEO Larry Fink warns: AI infrastructure has become the backbone of the US economy, halting data center construction will trigger a recession

BlackRock CEO Larry Fink has issued a strong warning, directly linking data center construction to the fate of the U.S. economy, stating that any form of moratorium would plunge the United States into recession.

In an interview with CNBC on Wednesday after BlackRock reported better-than-expected third-quarter results, Fink said, "If this country imposes a moratorium of any form, we will fall into a recession." He emphasized that the U.S. economy is now largely built on the massive expansion of AI infrastructure capital expenditure. His remarks come as data center construction becomes a heated issue in the lead-up to the November 3 midterm elections, emerging as a focal point of debate among communities and lawmakers across the country.

Fink’s warning has had a direct impact on market sentiment. BlackRock’s share price rose about 1% intraday, and his comments injected a powerful endorsement from a top Wall Street asset management institution into the ongoing policy debate surrounding AI capital spending.

Policy Risks Under Election Pressure

The issue of data center construction has evolved from a business discussion into a political topic.

As the midterm elections approach, local communities' strong opposition to data center construction continues to intensify, with core conflicts focused on rising utility costs, water consumption, environmental damage, and a lack of investment transparency.

Fink acknowledged existing concerns about data center construction but also pointed out that "most of them are rooted in misinformation." He clearly defended the industry, stating that data centers are not the problem and are in fact creating unprecedented new job opportunities.

Massive AI Capital Expenditure, Deep Economic Linkages

Fink's warning is grounded in the deep penetration of AI infrastructure investment into the real economy. He noted that large-scale data center construction has created strong demand across several sectors, including construction workers, physical digital infrastructure, AI computing hardware, and power grid energy infrastructure, engaging wide participation in the economy.

Wall Street analysts estimate that total AI capital expenditure could exceed $1 trillion by 2027, with cumulative investment possibly surpassing $5 trillion by 2030. At this scale, any policy-level disruption would trigger chain reactions across the supply chain, job market, and energy industry.

The timing of Fink's remarks is also noteworthy. BlackRock’s better-than-expected third-quarter results released earlier in the day provided stronger market credibility for its CEO’s public statements. As head of the world’s largest asset management firm, Fink’s assessments of macroeconomic trends are closely watched by investors. In the interview, he also pointed out that capital demand remains extremely strong across all economic sectors, and AI infrastructure development is the most representative part of this wave of demand.