BlackRock’s Larry Fink warns data center moratorium could trigger recession

Larry Fink has a new item on his worry list. The BlackRock CEO warned that a moratorium on data center construction could cause a recession, according to CNBC. The warning lands just after New York enacted a one-year moratorium on environmental permits for large data centers, defined as facilities drawing 50 MW or more. The state announced the pause around July 15-16, 2026, making it the first statewide action of its kind in the US. What Fink is actually worried about His case is that restrictions like New York’s could slow the expansion of the power grid. That grid is what AI infrastructure runs on, and Fink says the US needs to boost power delivery quickly. Fink has put a price tag on the asphalt. He estimates the US needs between $7-9 trillion in investment in power grid and security infrastructure over the coming years. He also framed the issue as a competitiveness problem. Fink pointed to China, which is aggressively expanding its nuclear and solar capacity, as the rival the US risks falling behind. BlackRock has skin in this game Fink is not a neutral commentator here. BlackRock is one of the major financiers of the data center boom. The firm led a notable debt financing for ...