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BlackRock and Microsoft are set to launch a $30 billion fund aimed at building AI infrastructure, including data centers and energy projects.
This AI funding initiative, announced on September 17, will have MGX, an Abu Dhabi-backed company as one of the financial backers, while Nvidia will offer advice on AI data center design. Also named in the partnership is BlackRock’s infrastructure arm, Global Infrastructure Partners, which it acquired for $12.5 billion earlier this year.
The fund plans to raise $30 billion in equity and leverage an additional $70 billion in debt financing to fuel AI expansion.
The majority of the investments will be in the U.S. to boost the nation’s AI competitiveness, with additional investments directed to partner countries.
Microsoft CEO, Satya Nadella, highlighted the long-term economic potential of this partnership stating the venture will “bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way”.
BlackRock CEO Larry Fink noted that the deal mobilizes capital for AI infrastructure, which will unlock a multi trillion-dollar investment opportunity.
Deal to Address AI Supply Chain and Energy Demands
This partnership is also expected to play a role in addressing the challenges of AI supply chains and energy sourcing and comes at a time when the computing power required for AI far exceeds previous technologies.
A report from the Center for the Governance of AI shows that the computing power used to train AI systems in the past 13 years has gone up by a factor of 350 million.
The partnership’s focus on energy infrastructure is timely, particularly for Microsoft, which in May announced a deal for Brookfield Asset Management to develop 10.5 gigawatts of renewable energy between 2026 and 2030 to meet its energy demands.
