BlackRock, Microsoft, and Partners Launch $30 Billion AI Infrastructure Inve...

Asianfin -- BlackRock, Microsoft, Global Infrastructure Partners (GIP), and Abu Dhabi-based MGX have announced the creation of the Global AI Infrastructure Investment Partnership (GAIIP), a major new initiative aimed at advancing AI infrastructure.

The partnership is set to raise $30 billion in private equity capital, with the potential to mobilize up to $100 billion when including debt financing. This funding will support the development and expansion of data centers and energy infrastructure necessary to power AI technologies.

GAIIP will primarily focus its investments in the U.S., targeting efficient scaling of data centers along with energy and decarbonization efforts. The partnership aims to address the growing demand for computing power driven by the rapid advancement of AI, which is also increasing the need for substantial energy resources.

The surge in data center growth and energy demands has posed challenges for tech companies' decarbonization goals. For instance, Microsoft reported that its Scope 3 emissions for 2023 were over 30% higher than in 2020, primarily due to expanded data centers supporting AI.

Google and Amazon have also highlighted the impact of AI-related energy consumption on their sustainability targets and have increased their investments in clean energy to address this issue.

The rising demand for clean energy has had broader implications for climate initiatives across various sectors. For example, CarbonCapture, a climate tech company, recently canceled a major carbon capture project in Wyoming due to heightened competition for renewable energy from data center operators.

Microsoft Chairman and CEO Satya Nadella emphasized, “We are committed to ensuring AI drives innovation and growth across every sector of the economy. The Global AI Infrastructure Investment Partnership will help us achieve this vision by uniting financial and industry leaders to build and sustain the infrastructure of the future.”

The partnership aligns with BlackRock’s recent focus on mega-trends in investment, including infrastructure and energy transition. BlackRock’s planned acquisition of GIP underscores its belief in the rapid growth of infrastructure investments, driven by global demand for upgraded digital infrastructure, supply chain transformations, and trends in decarbonization and energy security.

“Leveraging private capital to build AI infrastructure, such as data centers and power facilities, will unlock trillions in long-term investment opportunities. Data centers are foundational to the digital economy, and these investments will drive economic growth, create jobs, and foster AI technology innovation,” said BlackRock Chairman and CEO Larry Fink.

Nvidia will support GAIIP by leveraging its expertise in AI data centers and AI factories. Accelerated computing and generative AI are driving increasing demand for AI infrastructure in the next industrial revolution, said Nvidia founder and CEO Jensen Huang.

Nvidia will use its full-stack computing platform expertise to support GAIIP and its portfolio companies in designing and integrating AI factories to drive industry innovation, he added.