Susana SchwartzTable of Contents
BlackRock says DC moratorium would trigger a recession
BlackRock CEO Larry Fink says a U.S. moratorium on data center construction would trigger a recession. He argues that the capex and buildout of AI infrastructure are propping up the U.S. economy, with Wall St. projecting more than $1 trillion in spend next year, and possibly $5 trillion by 2030.
As the national debt climbs to $40 trillion, some question whether debt-financed AI buildouts are creating a speculative bubble that could trigger an economic downturn if AI yields are not proportionate to the capital being poured into AI infrastructure.
How dependent is the U.S. economy on what some deem to be a speculative, debt-fueled AI bubble? This speculation intersects with increasing scrutiny of who is actually funding the multi-trillion-dollar infrastructure buildout. For example, Meta CEO Mark Zuckerberg is now being questioned by Congress about $3.9 billion in data center-driven research tax credits, since he is classifying physical data center builds as “experimental pilot models.”
In 2025, Microsoft, Alphabet, Amazon, Meta, JPMorgan Chase, and Nvidia collectively got $83 billion in federal corporate tax breaks. While Meta is the only one that has gone as far as to use research credits for physical “experimental” buildings, it’s pushed the envelope far enough that Congress is starting to take a closer look.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
Marvell CEO shoutout to ‘connectivity’: Speaking at Marvell’s 2026 Investor Day, CEO Matthew Murphy said connectivity and “efficient data movement” are fundamental AI constraints, comparable to compute and memory.
The ‘fiber race’ is on – investors take note: AT&T is folding Gigapower and Lumen’s fiber assets into a joint venture half owned by GIP and CPP Investments, demonstrating a different strategic path than T-Mobile and Verizon.
AI Today: What You Need to Know
Meta frontier AI model: Under Chief AI Officer Alexander Wang’s direction, Meta’s Muse Wonder is designed to compete with other “frontier” AI models, available only for users who subscribe to Meta’s premium AI coding tool, Muse Code.
PA Butler twp. DCs: In Butler Township, 2,500-foot data center setbacks, electrical use and power generation were part of a curative amendment discussed by supervisors, who adopted 50 pages of rules in answer to public opinion.
Corscale DC: Corscale Data Centers plans to build three 409,500-square-foot data center buildings on the former Dauphin Highlands Golf Course at 650 S. Harrisburg St. The planning commission reviewed that plan for the first time this week.
GlobalFoundries silicon photonics: The CHIPS Program Office will reallocate up to $955 million in incentives to help fund GlobalFoundries’ modernization of its semiconductor manufacturing facilities in Malta, NY and Burlington, VT.
Eurofiber connects German DCs: Eurofiber is connecting six German cities with WDM connections among data centers in Berlin, Düsseldorf, Frankfurt, Hamburg, Munich, and Stuttgart. The company is using NGN Fiber Network.
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