BlackRock CEO: Fear of data centers is “based on misinformation,” aims to securitize GPUs into a $15 trillion market

According to Zhiyong Finance APP, BlackRock CEO Larry Fink has pushed back against growing concerns over data center expansion, arguing that much of this opposition is rooted in misinformation.

In an interview, Fink stated, "There are a lot of rumors and fears about data centers. Most of them are based on misinformation, and most of them are wrong," specifically responding to complaints about water usage with, "Golf courses consume more water than data centers."

He warned that, given how much the U.S. economy relies on the current wave of ongoing capital expenditure and construction, any move to pause data center development could trigger a recession.

"Data centers are not the problem. In terms of workers, they're creating more new jobs than ever before," he said.

BlackRock's (BLK.US) third-quarter financial report shows its assets under management reached a record $5.5 trillion. The company recorded $205 billion in new client inflows.

The BlackRock chief highlighted an unprecedented phenomenon in the capital markets, noting this is the first true capital shortage he has observed in his 50-year career.

Fink explained, "Our government is demanding more and more credit. The scale of bond auctions is getting bigger and bigger and bigger," pointing out that U.S. national debt has grown from $8 trillion in 2000 to $40 trillion today—an increase of $32 trillion in just 26 years.

To address the capital shortage and enable smaller companies to access computing power, Fink outlined BlackRock's (BLK.US) efforts to securitize GPU and other chip assets.

"Democratizing computing power; that's the only way to make it happen," he said, explaining that startups lack credit ratings but need computing resources to compete.

By partnering with hyperscale cloud providers and chip companies to collect chip lifecycle data, BlackRock (BLK.US) aims to achieve credit ratings based on chip residual value, potentially creating a market similar to the $15 trillion mortgage-backed securities (MBS) industry.

Fink also shared his views on the broader labor market and the potential economic impact of AI. He noted that the U.S. currently faces shortages of electricians, plumbers, welders, and nurses; at a recent BlackRock meeting, 80% of healthcare institutions reported a shortage of nurses.

Fink does not view AI merely as a threat to employment, suggesting instead that nations with aging populations—such as Japan—could use robotics and AI to boost productivity and thus achieve a "demographic dividend."

He remains confident that the U.S. can solve its deficit problems through economic growth—provided that growth reaches 3% or higher.