BlackRock's Fink names a U.S. recession trigger, sounds alarm over $40 trillion national debt
BlackRock CEO Larry Fink warns that halting data center construction could trigger a U.S. recession, citing the sector's massive capital expenditure. He defends data centers against environmental concerns, arguing they are essential for economic growth and AI development.
Why it matters
It highlights the tension between the massive energy/infrastructure demands of AI and environmental sustainability, and the potential economic consequences of policy intervention.
Larry Fink, CEO of BlackRock, the world's largest asset manager, made that clear Wednesday in a CNBC interview , while also warning about the burgeoning national debt.
He said "a moratorium of some sort in this country" would put the U.S. in a recession, commonly defined as two straight quarters of shrinking economic output.
Fink was referring to a potential push to stop data center buildouts across the U.S. over concerns that they harm the environment. Data centers are the huge buildings packed with computers that power AI.
“So much of our economy is based on the buildout of this capex,” Fink said.
Public opinion on data centers is souring. A Pew Research Center survey found at least 49% of Americans say data centers are mostly bad for the environment, home energy costs and quality of life for those living near them.
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