BlackRock CEO Larry Fink Warned of an AI Power Crunch—New York Just Halted Large Data Centers: CEG, VST, NEE in Focus

New York has officially become the first U.S. state to halt the construction of large data centers, validating recent warnings from BlackRock Inc. (NYSE:BLK) CEO Larry Fink about America’s strained power infrastructure and putting major utility stocks like Constellation Energy Corp. (NASDAQ:CEG), Vistra Corp. (NYSE:VST), and NextEra Energy Inc. (NYSE:NEE) squarely in the spotlight.

A ‘Frightening’ Reality for AI Infrastructure

According to a Reuters report, New York Governor Kathy Hochul on Tuesday issued an executive order imposing a one-year moratorium on environmental permits for new data centers consuming 50 megawatts or more.

The decision marks a major escalation in the clash between the artificial intelligence boom and local resources. “As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul stated.

The ban perfectly mirrors the exact scenario BlackRock’s Fink warned about, around the same time. Noting that the United States is failing to invest fast enough in its power grids, Fink cautioned, “I actually get frightened when I see states saying we’re going to do a moratorium. That’s not the answer. The answer is how do we deliver more power quickly?”

The Grid Crunch and Utility Stocks

The moratorium underscores an energy bottleneck that threatens the AI expansion. With tech hyperscalers racing to build infrastructure, Fink noted that data centers currently cost “$50, $60 billion for a one gigawatt” facility.

However, without adequate power generation, these massive capital investments face critical roadblocks. This dynamic places immense focus on utility and clean-energy giants such as Constellation Energy, Vistra, and NextEra Energy.

As states like New York restrict development due to grid strain and rising electricity prices, these energy producers are positioned as essential partners for tech companies. States with the capacity to deliver consistent power without hiking consumer prices will ultimately become “the big winners for growth,” according to Fink.

The Global AI Race

The U.S. power grid restrictions are raising concerns about America’s ability to maintain its technological edge. While New York hits the brakes to protect local ratepayers and the environment, global competitors are accelerating their energy grid capabilities.

Fink starkly contrasted the U.S. delays with foreign infrastructure buildouts, warning, “China is building 100GW of nuclear. They’re building close to 100GW of solar. They are getting set up for this AI revolution and the need for power. We’re not doing this enough.”

As capital markets prepare to finance what Fink calls “the next revolution in finance,” the New York moratorium serves as a stark reminder that physical power constraints may ultimately dictate the speed of AI advancement.

How Are These Energy Stocks Performing?

Here’s how the above-mentioned and a few more energy stocks have performed in 2026.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Domenico Fornas on Shutterstock.com