BlackRock has announced a partnership with Microsoft to create a fund targeting up to $100 billion in investments to build the infrastructure needed to support the rapid expansion of artificial intelligence (AI).
The Global AI Infrastructure Investment Partnership aims to raise $30 billion in private equity capital from investors, companies and asset owners, with the potential to mobilize $100 billion if it also includes debt financing.
As the demand for generative AI grows, so does the need for specialized data centers that can handle massive computing power, leading to higher energy consumption. The fund will focus on investing in new and expanded data centers to meet this demand, as well as energy infrastructure that can provide the necessary power to run these facilities.
MGX, an Abu Dhabi-backed investment firm, will act as general partner in the fund, while Nvidia, the leading US chip designer, will bring expertise in AI data centers. The investments will primarily be aimed at the American market.
Brad Smith, vice chairman and president of Microsoft, emphasized the importance of collective efforts, saying: “The capital expenditures required for AI infrastructure and the new energy to power it go beyond what any single company or government can finance. This financial partnership will not only advance technology, but also enhance national competitiveness, security and economic prosperity.”
Larry Fink, Chairman and CEO of BlackRock, highlighted the enormous potential of AI-related infrastructure investments: “Mobilizing private capital to build AI infrastructure such as data centers and power will unlock a long-term investment opportunity of billions of dollars.”
The project comes at a time when global interest in AI continues to grow, with significant capital being channeled into developing technologies that promise transformational productivity gains and technological breakthroughs. Sheikh Tahnoon bin Zayed al-Nahyan, Chairman of MGX, commented: “Artificial intelligence is not only an industry of the future, it underpins the future. Through this unique partnership, we will enable faster innovation, technological breakthroughs and transformational productivity gains across the global economy.”