BlackRock, Microsoft, and Partners Unveil $100B AI Infrastructure Fund

Driving the news: BlackRock, Microsoft, Global Infrastructure Partners (GIP), and MGX are joining forces to invest in AI computing and energy infrastructure. The new Global AI Infrastructure Investment Partnership (GAIIP) aims to raise $30 billion in private equity and secure $100 billion through debt financing.

Why it matters: Data center electricity demand is projected to rise 22% by 2035 due to growing AI infrastructure needs. The partnership seeks to address the growing need while driving AI technology advancements.

The big picture: Tech firms are competing to construct data centers equipped with Nvidia GPUs, essential for running generative AI models like OpenAI's ChatGPT. These GPUs require significant power, and the rising demand has delayed launching new facilities.

• Microsoft has ramped up investments in Azure, spending $19 billion in its fiscal Q4 to support AI initiatives.
• BlackRock recently gained Federal Energy Regulatory Commission (FEC) OpenAI's for its $3 billion GIP acquisition, expected to close Oct. 1.
• UAE-based MGX focuses on investments in AI and advanced technologies like semiconductors. Nvidia will contribute its AI data center expertise.

What they're saying: "Data centers are the bedrock of the digital economy, Larry Fink, BlackRock Chairman and CEO, said in a press release. "These investments will help power economic growth, create jobs, and drive AI technology innovation."

What's next: GAIIP will target U.S.-based infrastructure projects, leveraging their combined expertise to build data centers that meet future AI demands.