Microsoft, BlackRock to launch $100 billion AI partnership for data centres and power

Microsoft and BlackRock have announced the formation of the Global AI Infrastructure Investment Partnership (GAIIP), a new venture targeting an initial capital raise of $30 billion. This initiative, announced on September 17, 2024, aims to develop and expand data centres and energy infrastructure, with the potential to mobilise up to $100 billion through additional debt financing.

The partnership, which also includes Global Infrastructure Partners (GIP) and MGX, a technology investment firm based in Abu Dhabi, reflects a concerted effort to address the soaring demand for computational power required by advanced AI technologies. As AI models, particularly those involved in deep learning and large-scale data processing, continue to evolve, the need for robust and scalable infrastructure becomes increasingly critical.

Microsoft and BlackRock’s collaboration is expected to drive significant advancements in AI infrastructure. The investment will primarily focus on the United States, with additional projects planned for partner countries. This expansive approach is designed to enhance AI supply chains, improve energy sourcing, and support the growing ecosystem of AI technologies.

Satya Nadella, CEO of Microsoft, emphasised the transformative nature of the initiative: “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 by bringing together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way.”

The initiative also highlights the crucial role of energy infrastructure in supporting AI development. With AI models, such as those utilised by OpenAI’s ChatGPT, demanding immense computational power, there is a pressing need for new data centres and energy sources. This growing requirement for specialised infrastructure has created a bottleneck in the tech industry, underscoring the importance of this new investment.

BlackRock’s Chairman and CEO, Larry Fink, remarked on the broader economic impact of the initiative: “Mobilising private capital to build AI infrastructure like data centres and power will unlock a multi-trillion-dollar long-term investment opportunity. Data centres are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation.”

The partnership also benefits from the expertise of Nvidia, a leading AI chip maker, which will contribute its knowledge in AI data centres and AI factories.

Nvidia’s CEO, Jensen Huang, noted the accelerating demand for AI infrastructure, stating, “Nvidia will use its expertise as a full stack computing platform to support GAIIP and its portfolio companies on the design and integration of AI factories to propel industry innovation.”

MGX, launched earlier this year with support from Abu Dhabi’s Mubadala and AI firm G42, brings a strategic focus on AI and advanced technologies.

His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of MGX, highlighted the significance of AI for future economic growth: “Artificial intelligence is not just an industry of the future; it underpins the future. Through this unique partnership, we will enable faster innovation, technological breakthroughs, and transformational productivity gains across the global economy.”

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