BlackRock and Microsoft are teaming up to introduce an ambitious investment fund that surpasses $30 billion. The collaboration aims to develop data centers and energy projects to cater to the growing demands of artificial intelligence (AI) technology. This partnership signifies a substantial financial interest in AI infrastructure, marking one of the largest investment vehicles to emerge on Wall Street.
The new fund will be overseen by Global Infrastructure Partners (GIP), BlackRock’s recently acquired infrastructure unit, with Microsoft and MGX serving as general partners. Nvidia, a leading AI chipmaker, is providing expertise on factory design and integration.
Named the Global AI Investment Partnership, this extensive initiative addresses the escalating need for digital infrastructure and energy due to the rapid expansion of AI technology. The increased computational power required for AI models has created strain on energy resources, prompting concerns about capacity limitations. The investment fund seeks to alleviate these concerns by constructing the necessary energy and computing infrastructure to support the progress of AI.
BlackRock aims to raise over $30 billion in equity for the fund, with an additional $70 billion in debt financing targeted. This substantial $100 billion investment will be utilized for AI-related infrastructure projects, including data centers and renewable energy endeavors, aligning with the asset manager’s focus on the energy sector as a prime area for growth.
CEO Larry Fink highlighted the vast potential of the AI sector, emphasizing the opportunity to mobilize private capital for developing AI infrastructure, which he believes will unlock a lucrative long-term investment platform.
This initiative follows BlackRock’s agreement to acquire GIP for $12.5 billion earlier this year, an acquisition that solidifies the organization’s standing as a key player in infrastructure investments.
Microsoft, known for its significant investments in AI and renewable energy, has made substantial commitments toward green energy objectives. The tech giant has pledged to back $10 billion worth of renewable energy projects with Canada’s Brookfield Asset Management and aims to match all its energy consumption with zero-carbon energy by 2030.
Microsoft President Brad Smith stressed the importance of substantial investments in AI infrastructure, emphasizing the need for increased capital investment to accelerate the development of essential AI infrastructure.