Business · Economy · 10 hrs ago
BlackRock CEO says slowing data center construction could raise inflation
BlackRock CEO Larry Fink says slowing data center construction could raise inflation because computing power is already expensive.
He made the case during an interview in Berlin, amid debate over whether the huge sums going into AI are a lasting economic shift or a bubble.
More data centers could eventually lower computing costs by expanding capacity, though the investment needed to build them can push prices up in the short term.
US prices for computing equipment rose 13% year on year in August, while prices for AI-related imports rose nearly 20%; the direct contribution to overall inflation was about 0.2 percentage points.
AI investment is also increasing competition for financing, while energy demand and limited power infrastructure could make projects more costly or delay them.
The impact depends on whether capacity and energy supply keep pace with the expansion of AI, and the sources give no specific next step.
BlackRock Chief Executive Larry Fink said slowing data center construction could increase inflation rather than reduce it.
He argued that more data centers could expand computing capacity and lower its unit cost over time.
The article said computing equipment prices in the United States rose 13% year on year in August, while the direct effect on overall inflation remained limited.
It also reported that investment in artificial intelligence infrastructure is increasing demand for capital, energy and supporting infrastructure.
The article contrasted Fink’s concern about insufficient capacity with warnings from Citadel founder Ken Griffin about bubbles in AI investment.
- Who
- BlackRock Chief Executive Larry Fink. Citadel founder Ken Griffin also raised concerns about AI investment bubbles.
- What
- Fink said slowing data center construction could raise inflation. He argued that expanding capacity could lower computing costs over time.
- When
- The article was published on November 9, 2026. The date of Fink’s interview was not stated.
- Where
- Fink made the comments to Bloomberg Television during the Berlin Global Dialogue.
- Why
- Fink said computing power is costly and more data centers could increase capacity and lower unit costs over time.
Larry Fink
Ken Griffin
AI investment
Larry Fink
Fink argued that the main danger is insufficient capacity, and that slowing data center construction could increase inflation.
Ken Griffin
Griffin warned that bubbles are forming in AI investment.
Investment risk
Larry Fink
Fink pointed to the risk of too little data center capacity.
Ken Griffin
Griffin’s concern was that AI investment could be a major technology investment bubble.
US computing equipment prices rose 13% year on year, according to the article.
The US Bureau of Economic Analysis released an initial estimate that the economy grew at an annualized rate of 3.4% in the third quarter of 2026.
Bloomberg HT published the article about Fink’s comments.
- BlackRock CEO
- Larry Fink
- Interview venue
- Berlin Global Dialogue
- US computing equipment prices
- Up 13% year on year in August
- Estimated US economic growth
- 3.4% annualized in the third quarter of 2026
- Global AI capital spending
- J.P. Morgan estimated it could reach about $900 billion in 2026