BelledeLari Fink warns that if data center construction comes to a halt, the United States could fall into recession
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BlackRock CEO Larry Fink stated that if the United States implements some kind of suspension on data center construction, the economy could fall into recession. He referred to the backlash regarding pressures on electricity, water resources, and power grids as "misinformation" and argued that data centers are not the problem.
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BlackRock CEO Larry Fink ( Larry Fink ) issued a blunt warning about factors that could drag down the U.S. economy: if the construction of data centers, which support the boom in artificial intelligence, is halted, the consequences could be severe.

Fink said in an interview with CNBC on Wednesday that after BlackRock released its third-quarter financial results, which were better than expected, a surge in AI infrastructure spending has become the core of economic growth, and stifling it would be very dangerous.

He said, "If we implement some kind of suspension measures in this country, we will fall into recession." He added, "A large part of our economy is built on the expansion of these capital expenditures."

As the mid-term elections on November 3rd approach, data centers have become a focal point of controversy; opposition from local communities to their power consumption, water usage, and the pressure they put on the power grid is growing.

According to data from the Brookings Institution ( Brookings ), as of July, at least 100 locations had approved suspensions of construction; New York State has also suspended certain permits for up to one year. Fink countered these criticisms, stating that many of them were "misinformation," and insisted that "data centers are not the problem," while pointing out the demand for construction jobs and energy infrastructure that the construction process brings.

The scale of expenditures also supports his claims. Wall Street analysts estimate that by 2027, AI's capital expenditures could exceed one trillion dollars, and by 2030, the total will surpass five trillion dollars. This makes the industry an important driving force for the approximately 3% annual GDP growth rate that Fink hopes to maintain. He stated that more private capital is needed to sustain this process and mentioned that BlackRock has communicated on this matter with chip manufacturers, including AMD and Broadcom.

But Fink is moving forward against the growing wave of public opposition. A survey conducted this summer by the Anenberger Center for Public Policy ( Annenberg Public Policy Center ) showed that 61% of Americans are opposed to the construction of new data centers in their areas, up from 49% in the spring, and the majority of Democrats, Republicans, and independents hold this opposing view as well.

External concerns mainly focus on the surging demand for electricity, water consumption, and the pressure on local power grids. This backlash has already led to practical restrictions: New York has implemented suspensions for ultra-large data centers, Texas has paused approval processes, and restrictions have been imposed in cities ranging from Austin to Jersey City; Data Center Watch statistics show that in just the first quarter of 2026, approximately $130 billion worth of projects were halted or delayed.

This has also become an election issue in reality. In the Senate race in Ohio, this controversy is at the core. Democrat Sherrod Brown ( Sherrod Brown ) has been opposing this wave of construction throughout the campaign; while super PACs supported by billionaires, including Mark Anderson ( Marc Andreessen ) and President Greg Brockman ( Greg Brockman ), have invested millions of dollars in advertising in several swing states to defend data centers. U.S. President Donald Trump has also expressed his views, warning that communities that resist these facilities may become "backward and poor."

Against this backdrop, Funk directly countered, suggesting that the boom in the construction sector in the United States – represented by AI – is supporting the American economy, and that any changes could lead to a significant decline.

This warning also carries weight for the crypto market, as Bitcoin is now more closely linked to broader risk appetite and macroeconomic conditions.

Fink oversees the world's largest asset management company and is in charge of its dominant spot Bitcoin ETF. He has become one of Wall Street's most well-known proponents of cryptocurrencies, once calling Bitcoin an asset for a "fearful world" and describing it as a legitimate alternative investment; meanwhile, BlackRock also lists AI as a potential source of future demand for cryptocurrencies.

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