BLACKROCK CHIEF WARNS DATA CENTRE MORATORIUM COULD SPARK RECESSION

BlackRock chief executive Larry Fink has warned that a moratorium on data centre construction in the United States could trigger a recession. He made the comments in a television interview on Wednesday, after BlackRock reported better-than-expected third-quarter earnings. "If we have a moratorium of some sort in this country, we will be in a recession," Fink said, pointing to spending on artificial intelligence infrastructure as a driver of the economy. BlackRock shares rose about 1% in late morning trading. Opposition to data centre construction has become an issue ahead of the 3 November US midterm elections.

Communities opposing data centre projects have raised concerns about rising utility costs, water use, environmental damage and a lack of transparency over investment, according to reports. Fink acknowledged the concerns but said "most of it is on misinformation," arguing that the projects create jobs rather than harm local economies. He said the investment boom has driven demand for construction workers, digital infrastructure, AI computing hardware and energy infrastructure to secure grid power. Wall Street analysts estimate that total capital expenditure on AI infrastructure could exceed $1 trillion by 2027 and surpass $5 trillion by 2030.

Fink's comments add to the debate over data centre construction ahead of the November elections. Their outcome may influence how local and state authorities regulate new projects. India's National Investment and Infrastructure Fund separately said it expects to draw about $3.2 billion for one of its entities. Between $700 million and $800 million of that is earmarked for data centres, according to chief executive Sanjiv Aggarwal, speaking at the Bloomberg New Economy Forum in New Delhi. Neither Fink nor BlackRock has indicated any change to its own investment plans.