In a significant move to strengthen the infrastructure supporting artificial intelligence, BlackRock and Microsoft announced on Tuesday that they are launching a fund exceeding $30 billion to invest in data centers and energy projects for AI technologies.
This new investment vehicle, called the Global AI Infrastructure Investment Partnership, aims to address the substantial computational power needed for AI models, particularly those in deep learning and large-scale data processing. As AI's computational demands surge, so does the need for more advanced data centers equipped with clusters of specialized chips to handle the immense data processing requirements.
“AI models require vast amounts of computational power, which leads to significant energy consumption,” said representatives from BlackRock and Microsoft in a joint statement. The partnership's investments will primarily focus on enhancing AI supply chains, including energy sourcing, to support AI’s infrastructure needs.
The fund will also leverage expertise from key partners. Abu Dhabi-backed investment firm MGX will serve as a general partner, while AI chipmaker Nvidia will provide technical knowledge to guide the development of high-performance AI data centers.
This fund aims to mobilize up to $100 billion in total investment potential, including debt financing. This substantial pool of capital is expected to have a significant impact on building the infrastructure needed to power AI’s growth.
The bulk of the investments will be in the United States, with some investments flowing to partner countries. As demand for AI continues to grow worldwide, the companies aim to build infrastructure that can support both AI development and broader technological advancements in these regions.
With the increasing prominence of AI, the computational needs are scaling rapidly. Technologies like large language models, generative AI, and other advanced AI applications rely heavily on massive data processing capabilities. This, in turn, drives demand for more energy-efficient, high-performance data centers to handle AI workloads.
By creating this fund, BlackRock and Microsoft aim to be at the forefront of the global push to build the necessary infrastructure that will enable AI to thrive. Their combined expertise, along with that of MGX and Nvidia, positions this partnership as a significant force in the development of AI-related energy and computing infrastructure.
