BlackRock Inc. and Microsoft Corp. are part of a new group that plans to invest up to $100 billion to build data centers and energy projects to support the rapid development of artificial intelligence.
The investments will be made under the newly launched Global AI Infrastructure Investment Partnership, a partnership that includes Global Infrastructure Partners – an infrastructure investment company acquired by BlackRock for $12.5 billion in January, BlackRock itself, Microsoft and Dubai investment company MGX. The partnership will make investments in new and expanded data centers to meet the growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities. The investments will be primarily made in the U.S., with the remainder to be invested in “U.S. partner countries.”
According to a press release from GIP, the partnership will support an open architecture and broad ecosystem, providing full access on a non-exclusive basis for a diverse range of partners and companies. While not listed as an investor, the fund will also be advised on factory design and integration by Nvidia Corp., the world’s largest AI chip maker.
The new partnership also plans to actively engage with industry leaders to help enhance AI supply chains and energy sourcing for the benefit of its customers and the industry.
GAIIP intends to seek to unlock $30 billion in private equity capital over time from investors, asset owners and corporates for its initial investments, which in turn will mobilize up to $100 billion in total investment potential when including debt financing.
“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” Satya Nadella, chairman and chief executive officer of Microsoft, commented on the partnership. “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.”
Microsoft’s participation in the group comes after it has already made multiple investment commitments to building AI-related infrastructure this year.
On May 2, Microsoft committed $2.2 billion to build cloud and AI infrastructure in Malaysia, followed on May 4 by a $3.3 billion commitment to build an AI data center in Wisconsin. In June, Microsoft announced its plans to spend $3.2 billion to expand data center capacity in Sweden, including support for AI.
Microsoft’s biggest external investment into AI so far has been its relationship with OpenAI, where it has now invested approximately $13 billion since 2019, with possibly more funding on its way.