Microsoft and BlackRock have teamed up with a group of companies to raise up to $100 billion to invest in artificial intelligence (AI) data centers, including the energy infrastructure needed to power them.
This initiative, called the Global AI Infrastructure Investment Partnership (GAIIP), was announced in a press release on Tuesday.
Other key players in the group include Global Infrastructure Partners (GIP), which BlackRock is in the process of acquiring, and MGX, a tech investor from the United Arab Emirates.
Microsoft CEO Satya Nadella stated, “We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy.” He added that the partnership brings “together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way.”
Initially, the group aims to raise $30 billion, with plans to secure up to $100 billion over time, including through debt financing. The funds will be used to develop new and existing data centers as well as the energy infrastructure required to meet the rising power demands of AI workloads.
The push to develop AI infrastructure has been driven by the demand for high-performance Nvidia GPUs, which are essential for running large-scale AI models like those behind OpenAI’s ChatGPT.
These data centers consume massive amounts of energy, creating a need for significant infrastructure investments.
Microsoft’s involvement in the partnership builds on its capital expenditures for expanding its Azure cloud platform, which supports AI clients like OpenAI. In July, Microsoft reported that its fiscal fourth-quarter capital spending reached $19 billion, including assets acquired under finance leases.
In addition, BlackRock’s acquisition of GIP for $3 billion in cash and 12 million shares of its common stock is expected to close on October 1, adding further momentum to the partnership.
MGX, launched in March with support from Abu Dhabi’s Mubadala and AI firm G42, is also a founding partner in the effort.