Highlights:

  • The partnership will invest in both new and expanded data centers to address the increasing demand for computing power, along with energy infrastructure development.
  • The partnership will collaborate with industry leaders to enhance AI supply chains and energy sourcing for both its customers and the broader industry.

BlackRock Inc. and Microsoft Corp. are partnering to invest up to USD 100 billion in constructing data centers and energy projects to facilitate the swift advancement of artificial intelligence.

The investments will be executed through the newly established Global AI Infrastructure Investment Partnership, which includes Global Infrastructure Partners—an investment firm acquired by BlackRock for USD 12.5 billion in January—along with BlackRock, Microsoft, and Dubai-based investment firm MGX.

The collaboration will focus on investing in both the development of new data centers and the expansion of existing ones to meet the growing need for computing power. Additionally, it will invest in energy infrastructure to create new power sources for these facilities. The majority of the investments will be targeted toward the U.S., with the remainder directed to “U.S. partner countries.”

A press release from GIP states that the partnership will promote an open architecture and expansive ecosystem, offering nonexclusive access to a wide array of partners and companies. Although Nvidia Corp., the world’s largest AI chip maker, is not listed as an investor, it will advise on factory design and integration for the fund.

The new partnership also aims to actively collaborate with industry leaders to improve AI supply chains and energy sourcing, benefiting both its customers and the broader industry.

GAIIP aims to raise USD 30 billion in private equity capital from investors, asset owners, and corporations for its initial investments. This capital is expected to generate up to USD 100 billion in total investment potential, including debt financing.

“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy. 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,” said chairman and chief executive of Microsoft, Satya Nadella.

Microsoft’s involvement in the group follows several investment commitments it has made this year toward developing AI-related infrastructure.

On May 2, Microsoft committed USD 2.2 billion to build cloud and AI infrastructure in Malaysia. This was followed on May 4 by a USD 3.3 billion commitment to construct an AI data center in Wisconsin. In June, Microsoft revealed plans to invest USD 3.2 billion to enhance data center capacity in Sweden, with a focus on supporting AI.

Microsoft’s largest external investment in AI to date has been its partnership with OpenAI, in which it has invested around USD 13 billion since 2019, with the potential for additional funding in the future.