BlackRock CEO Larry Fink warned that a nationwide US data center construction moratorium could trigger a recession, given the economy’s growing reliance on AI infrastructure investment. JLL estimates data center development will require $3 trillion in investment by 2030. Global occupancy stands at 97 percent, with 77 percent of planned capacity already pre-leased. In the US, demand is five times higher than two years ago, while vacancy rates have remained at 1 percent for three consecutive years.
Data centers face growing opposition across the US from communities, officials and the media. Moratoriums are being considered or implemented nationwide, ranging from one week to 18 months. Even traditionally data center-friendly Virginia is reviewing local impacts. Loudoun County, a major data center hub, voted last month to block new facility applications.
BlackRock CEO Larry Fink described opposition to data centers as largely “misinformation,” arguing that the sector is creating more jobs than ever. However, rising energy costs, grid upgrade challenges, and shortages of equipment, raw materials and skilled workers could delay data center development in the US and globally.
