According to a recent Financial Times report, BlackRock is set to launch an AI-focused investment fund exceeding $30 billion in partnership with Microsoft, aimed at developing data centers and energy projects to meet growing AI demands, according to sources. Nvidia will provide expertise, and MGX, an Abu Dhabi-backed firm, is also a general partner.

The fund addresses the significant energy and infrastructure needs of AI, which are expected to face capacity shortages in the coming years. AI requires far more power than previous technologies, putting strain on existing systems.

This will be the first major fund for Global Infrastructure Partners (GIP), BlackRock’s new infrastructure unit, since BlackRock acquired it for $12.5 billion earlier this year. The deal is expected to close in October.

BlackRock has identified energy infrastructure as a top growth opportunity, with CEO Larry Fink highlighting unprecedented demand. Earlier this year, Microsoft also committed $10 billion to renewable energy projects through Brookfield Asset Management as part of its goal to use 100% zero-carbon energy by 2030.

Resources:

Financial Times