BlackRock and Microsoft have unveiled plans for a $30bn investment fund, one of the largest of its kind, aimed at developing the infrastructure required for artificial intelligence (AI).The initiative, dubbed the Global AI Investment Partnership, will focus on building data centers and energy projects to meet the growing power demands of AI technologies. The fund, led by BlackRock's newly acquired Global Infrastructure Partners, will also see participation from Nvidia and MGX, an Abu Dhabi-backed investment company, with Nvidia advising on factory design and integration. The fund is positioned to address the energy-intensive nature of AI, which is expected to strain existing power and data grids in the near future.
This joint venture highlights the rising importance of AI infrastructure as businesses and governments brace for the next technological wave. AI computing requires significantly more energy than traditional innovations, leading to concerns about capacity bottlenecks. Nvidia’s CEO, Jensen Huang, described the push for AI infrastructure as part of the next industrial revolution, which demands accelerated computing capabilities. Additionally, the International Energy Agency has projected that electricity consumption by data centers will more than double by 2026, further emphasizing the need for expanded energy solutions.
BlackRock’s CEO, Larry Fink, sees this initiative as a key growth opportunity, especially in mobilizing private capital for AI infrastructure. The collaboration between BlackRock, Microsoft, and other major players represents a significant step toward securing the future of AI technology while addressing its environmental and operational challenges. With projections of soaring energy demands, the fund also aligns with Microsoft's commitment to achieving 100% carbon-neutral energy consumption by 2030.