BlackRock partnered with Microsoft to develop a $30 billion fund to address AI infrastructure needs such as energy and data centers.
BlackRock is preparing to launch an ambitious investment fund exceeding $30 billion in partnership with Microsoft.
This fund will focus on developing data centers and energy projects to meet the growing needs of artificial intelligence (AI) technology.
The collaboration marks one of the largest investment vehicles ever created on Wall Street, highlighting the financial sector’s strong interest in AI infrastructure.
BlackRock & Microsoft’s AI Partnership
BlackRock’s newly acquired infrastructure unit, Global Infrastructure Partners (GIP), will manage the fund.
Microsoft and MGX, an investment firm based in Abu Dhabi, will serve as general partners. Nvidia, a leading AI chipmaker, will guide designing and integrating factories.
Dubbed the Global AI Investment Partnership, this initiative aims to address the rising demand for digital infrastructure and energy resulting from the rapid expansion of AI.
The increasing computational power required to operate AI models has significantly strained energy resources, raising concerns about potential capacity bottlenecks.
This investment fund seeks to alleviate these issues by building the necessary energy and computing infrastructure to support AI growth.
BlackRock intends to raise up to $30 billion in equity for the fund, with an additional $70 billion in debt financing.
The combined $100 billion will be used for AI-related infrastructure projects, such as data centers and renewable energy initiatives.
This move aligns with BlackRock’s broader focus on the energy sector as a major growth area.
CEO Comments
Larry Fink, CEO of BlackRock, highlighted the immense potential of the AI industry, stating, “Mobilizing private capital to build AI infrastructure like data centres and power will unlock a multitrillion-dollar long-term investment opportunity.”
This move follows BlackRock’s $12.5 billion acquisition of GIP earlier this year, a deal expected to close by October, positioning the company as a key player in infrastructure investments.
Microsoft, which has invested heavily in AI and renewable energy, has made significant strides toward its green energy goals.
The tech giant previously committed to supporting $10 billion in renewable energy projects with Canada’s Brookfield Asset Management and aims to match 100% of its energy consumption with zero-carbon energy by 2030.
Microsoft President Brad Smith, emphasizing the importance of large-scale investments in AI infrastructure, told the Financial Times, “The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed. This kind of effort is an important step.”
