BlackRock, alongside Microsoft and Abu Dhabi-based investment firm MGX, is set to launch a $30 billion fund, marking it as one of the largest investment vehicles ever on Wall Street, according to Financial Times. The new fund, named the Global AI Investment Partnership, will focus on investing in data center construction and energy projects geared toward meeting the surging demand for artificial intelligence-related products.
The fund will be operated by BlackRock’s Global Infrastructure Partners, with Microsoft and MGX as general partners. Notably, Nvidia will serve as a consultant for factory design and integration. The partnership aims to attract up to $30 billion in equity investments and leverage up to $70 billion in total, marking BlackRock’s first major fund for Global Infrastructure Partners since acquiring this private equity fund for $12.5 billion earlier in 2024.
This initiative addresses the overwhelming power and digital infrastructure needs that the AI sector is expected to face, particularly due to the projected doubling of energy consumption by data centers by 2026, as reported by the International Energy Agency. In the U.S., home to a third of the world’s data centers, demand is rapidly increasing for the first time in two decades.
BlackRock’s CEO, Larry Fink, highlighted the energy sector as a key area for growth, suggesting that mobilizing private capital for AI infrastructure will unlock «multi-trillion dollar opportunities» for long-term investments. Microsoft previously supported renewable energy projects through Brookfield Asset Management and has committed to achieving 100% carbon-free energy consumption by 2030.