Microsoft and BlackRock are leading a coalition of companies to raise up to $100 billion in a new initiative aimed at developing data centers for artificial intelligence (AI) and the energy infrastructure required to power them. The group, known as the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), includes Global Infrastructure Partners (GIP), which is being acquired by BlackRock, and MGX, a tech investor based in the United Arab Emirates.
The GAIIP initiative was announced as part of a broader effort to accelerate the development of infrastructure for AI, a field experiencing rapid growth and innovation. The partnership’s initial goal is to raise $30 billion in capital, with plans to eventually expand the fund to $100 billion through additional financing. The collaboration aims to support the building of AI data centers and ensure they are powered sustainably, which is essential as the demand for energy-intensive computing hardware continues to surge.
Microsoft CEO Satya Nadella emphasized the importance of this initiative, saying it would bring together financial and industry leaders to help build the infrastructure needed for AI advancements while powering these innovations in an environmentally sustainable way. Microsoft’s participation comes as it continues to invest heavily in its Azure cloud platform, which supports AI customers like OpenAI. In the fiscal fourth quarter, Microsoft spent $19 billion on capital investments to expand its infrastructure.
The need for more AI data centers has become increasingly urgent as companies look to build facilities capable of running generative AI models, which rely heavily on Nvidia’s graphics processing units (GPUs). These GPUs require substantial power, leading to a bottleneck in the development of new data centers. GAIIP is designed to address these challenges by providing the necessary financial backing to build and sustain this infrastructure.
In addition to Microsoft and BlackRock, GIP plays a key role in this effort. BlackRock’s $3 billion acquisition of GIP, which is expected to close in October, will further bolster the partnership’s resources. MGX, launched earlier this year with backing from Abu Dhabi’s Mubadala and AI firm G42, will also contribute to the initiative’s ambitious goals.
As AI continues to transform industries, the GAIIP partnership aims to lay the foundation for future growth by ensuring the infrastructure to support AI advancements is in place and powered sustainably.
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