In a bold move to capitalise on the artificial intelligence (AI) boom, Microsoft and BlackRock are joining Abu Dhabi’s MGX to secure $30 billion in private equity capital. This investment will fund the development of vital AI infrastructure, including data warehouses and energy projects. The partnership aims to leverage this capital to reach $100 billion in total investments, according to an announcement made by the companies recently.
The collaboration between Microsoft, BlackRock, and MGX represents one of the largest AI-related infrastructure investments to date. The initiative, named the Global AI Infrastructure Investment Partnership, has been months in the making, according to BlackRock’s CEO, Larry Fink. The goal is to fund the construction of data centers and the energy systems required to power AI technology, which has seen exponential growth in demand across various sectors.
“The need to build out data centers globally is in the multi-trillion dollar range,” said Fink. He emphasized that the partnership is a prime example of capital markets fostering technological advancements and infrastructure development.
Most of the funds will be invested in the US, though a portion will be allocated to US partner countries, broadening the geographical impact of the project. The partnership is also looking to bring additional investors on board, including pensions and insurance firms, which are expected to be attracted to the long-term infrastructure investment opportunities. Brad Smith, Microsoft’s vice-chairman and president, reinforced the significance of this investment, stating, “AI is the next general-purpose technology that will fuel growth across every sector of the economy both in the United States and abroad.”
Chip maker Nvidia will join the effort and provide expertise in AI data centers and technological infrastructure. Nvidia has invested heavily in AI-related software, networking, and essential components needed to construct AI systems rapidly. This collaboration is expected to speed up the deployment of large-scale AI infrastructure globally.
AI services require a vast amount of energy, and as the demand for AI continues to surge, so does the need for a stable and scalable power supply. According to Bloomberg Intelligence, the electricity consumption of AI data centers in the U.S. could increase by 10 times by 2030. Energy producers are responding by delaying the retirement of coal and gas plants while simultaneously building renewable energy sources such as wind and solar farms.
Bayo Ogunlesi, head of Global Infrastructure Partners, stressed that power availability is a key factor in scaling AI infrastructure. “We will have to significantly increase the pace at which we develop new renewable power plants,” he said.
With Microsoft, BlackRock, and MGX at the helm, this initiative is poised to shape the future of AI by addressing both technological and energy demands. The coalition’s focus on infrastructure development is set to fuel the AI revolution, making this one of the most anticipated investments to date.
