BlackRock, Microsoft back $30 billion AI infrastructure venture

BlackRock, Microsoft, Global Infrastructure Partners (GIP), and MGX have joined forces to create the Global AI Infrastructure Investment Partnership (GAIIP), a new initiative set to channel $30 billion in private equity into expanding data centers and enhancing power infrastructure critical to artificial intelligence technologies.

Discussing the launch of GAIIP, Larry Fink, the Chairman and CEO of BlackRock, said investing in AI infrastructure, such as data centers and power sources, is a massive, long-term investment opportunity. He believes that these investments will unlock a multi-trillion-dollar market.

“Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation,” Fink said.

The focus will be on the US with some funds allocated to US partner countries, Microsoft noted in a Tuesday press release. The move comes one day after Microsoft said it was setting up two AI centers in Abu Dhabi to advance responsible AI practices.

GAIIP will also prioritize energy efficiency and decarbonization in its infrastructure projects. The entities want to ensure that AI development is aligned with environmental goals.

“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 GAIIP members plan to mobilize up to $100 billion in total investment potential when including debt financing.

“There is a clear need to mobilize significant amounts of private capital to fund investments in essential infrastructure. One manifestation of this is the capital required to support the development of AI,” said Bayo Ogunlesi, Chairman and CEO of Global Infrastructure Partners, expressing optimism that the collaborative effort will play a key role in driving the growth and development of AI technology.

The partnership will bring together leading global investors and technology experts, combining a deep understanding of infrastructure and technology with energy, power, and decarbonization capabilities. Nvidia will also support GAIIP, offering its expertise in AI data centers and AI factories to benefit the broader AI ecosystem.

“Accelerated computing and generative AI are driving a growing need for AI infrastructure for the next industrial revolution,” Jensen Huang, founder and CEO of NVIDIA stated.