BlackRock Highlights $1 Trillion AI Data-Center CAPEX, 30% Labor Surge
BlackRock’s 2026 outlook applied Jevons Paradox to AI, projecting hyperscale data-center CAPEX will reach $1 trillion by 2027 and highlighting Sterling Infrastructure’s 30% workforce increase to 4,400 employees in Q1 2026. The firm argued that accelerating AI deployment will expand labor demand across tech and service sectors.
1. BlackRock Applies Jevons Paradox to AI
BlackRock at its 2026 outlook presentation introduced the concept of Jevons Paradox in the context of AI deployment, arguing that increased efficiency from AI tools will drive higher overall demand for labor rather than reduce it.
2. Data-Center CAPEX Projections
The firm projected that hyperscale data-center capital expenditures will reach $1 trillion by 2027, reflecting surging investments in cloud infrastructure and storage capacity required to support expanding AI workloads.
3. Sterling Infrastructure Employment Growth
As an example of rising labor demand, data-center construction specialist Sterling Infrastructure expanded its workforce by 30%, growing from 3,200 employees in Q1 2025 to 4,400 in Q1 2026 to meet accelerating project commitments.
4. Implications for Labor and Investments
BlackRock suggested this dynamic will boost demand across technology, IT services and customer-service sectors, potentially guiding increased allocations to infrastructure and AI-themed investment strategies within its portfolios.