“Building the AI Infrastructure of the Future” — Microsoft Partners with BlackRock on $30 Billion-plus Fund to Develop and Power Data Centers
Microsoft has partnered with investment giant BlackRock to create the Global AI Infrastructure Investment Partnership (GAIIP), a more than $30 billion fund focused on developing critical infrastructure for artificial intelligence advancements.
The collaboration includes Global Infrastructure Partners (GIP) and MGX and will focus on building data centers and energy projects needed to power next-generation AI technologies.
Investments will primarily focus on the United States, supporting the expansion of computing power and energy resources, with additional investments planned in partner countries. The partnership will maintain an open architecture, granting non-exclusive access to a wide range of companies and organizations. AI darling Nvidia will also play a role in the initiative, helping to improve AI data centers.
$100 billion target
GAIIP aims to initially mobilize $30 billion of private equity capital, potentially increasing to $100 billion if combined with debt financing. Larry Fink, chairman and CEO of BlackRock, said: “Mobilizing private capital to build AI infrastructure, such as data centers and power, will unlock a multi-trillion dollar investment opportunity over the long term. Data centers are the foundation of the digital economy, and these investments will fuel economic growth, create jobs, and spur AI technology innovation.”
The creation of GAIIP comes at a time when demand for AI infrastructure is rapidly increasing. By pooling resources from leading global investors and technology companies, the partnership aims to accelerate the development of essential infrastructure for an AI-driven future.
Brad Smith, Microsoft’s vice chairman and president, noted that the capital needed for AI infrastructure and new energy sources is more than any single company or government can finance. “This financial partnership will not only help advance the technology, but also improve national competitiveness, security, and economic prosperity,” he said.
“Accelerated computing and generative AI are driving a growing need for AI infrastructure for the next industrial revolution,” said Jensen Huang, founder and CEO of Nvidia. “Nvidia will leverage its expertise as a full-stack computing platform to support GAIIP and its portfolio companies in the design and integration of AI factories to drive industrial innovation.”
Satya Nadella, chairman and CEO of Microsoft, summarized the alliance this way: “The Global AI Infrastructure Investment Partnership will help us realize this vision by bringing together financial and industry leaders to build the infrastructure of the future and power it sustainably.”