BlackRock, Microsoft Launch $30B AI Infrastructure Fund
BlackRock, Microsoft, Global Infrastructure Partners (GIP), and Abu Dhabi-based artificial intelligence (AI) development-focused company MGX have announced the launch of the Global AI Infrastructure Investment Partnership (GAIIP).
The new initiative is designed to expand data centers and improve power infrastructure that is essential for AI technologies. NVIDIA will provide its expertise in AI data centers and factories.
Managed through BlackRock’s Global Infrastructure Partners fund, which it acquired for $12.5 billion earlier this year, GAIIP intends to raise up to $30 billion in equity investments, with an additional $70 billion potentially available through leveraged debt financing. The partnership will prioritize its investments in the U.S., with a portion of the funds being allocated to U.S. partner countries, according to Microsoft.
“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” said Satya Nadella, chairman and CEO of Microsoft.
“The Global AI Infrastructure Investment Partnership will help us deliver on this vision, as we bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way,” Nadella added.
The new alliance also focuses on critical areas that BlackRock recently recognized as investment megatrends, such as infrastructure and energy transition.
“Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity,” said Larry Fink, chairman and CEO of BlackRock. “Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation.”
The new partnership is being established in response to the significant increase in the demand for computing capacity that is being driven by the dramatic growth in the use of AI. This demand is in turn necessitating a significant increase in the production of energy sources to power data centers.