BlackRock’s Fink Says Slow Data-Center Buildout Is Inflationary

BlackRock Inc. Chief Executive Officer Larry Fink warned that delays in building data centers could raise computing costs and threaten economic growth as demand for artificial intelligence accelerates.

“If we don’t build out these data centers, it is actually more inflationary because the cost of compute is so high right now,” Fink said in an interview on Bloomberg Television Wednesday, on the sidelines of the Berlin Global Dialogue event. “And the faster we can build out more data centers, the more compute we have, the faster we can bring down the cost.”

Fink, 73, said slowing the technology’s expansion would have wider consequences. “If we slow down the build out of this technology, I think it really does jeopardize the economy.”

Fink has previously waved off concerns about an AI bubble, pointing instead to supply shortages and saying demand growth has exceeded expectations. He has also warned delays in the technology’s build-out could ultimately limit access.

Read More: Ken Griffin Says AI ‘Almost Certainly’ in a Bubble Right Now