Microsoft and BlackRock lead effort to raise $100 billion for AI data centers

Microsoft and BlackRock are spearheading a new effort to raise up to $100 billion to develop cutting-edge data centers for artificial intelligence (AI) and the energy infrastructure needed to power them. The companies are part of the newly formed Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), a consortium focused on addressing the growing demand for AI infrastructure.

GAIIP, announced in a press release on Tuesday, brings together leading financial and tech players, including Global Infrastructure Partners (GIP), an infrastructure investor currently being acquired by BlackRock, and MGX, a tech investment firm based in the United Arab Emirates. The partnership aims to generate $30 billion in initial capital, with a long-term goal of reaching $100 billion, including debt financing.

"We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," said Microsoft CEO Satya Nadella in the announcement. He emphasized that the collaboration unites "financial and industry leaders to build the infrastructure of the future and power it in a sustainable way."

The rush to build AI-capable data centers is driven by the increasing need for facilities packed with Nvidia GPUs, which are essential for running generative AI models like OpenAI's ChatGPT. However, these GPUs demand significant energy, leading to bottlenecks in building new infrastructure. This surge in demand has pushed companies to innovate quickly to ensure they can meet the requirements of next-gen AI technologies.

Microsoft's participation in GAIIP adds to its already massive investment in infrastructure expansion to support its Azure public cloud. In its fiscal fourth quarter, Microsoft reported $19 billion in capital expenditures, including assets acquired under finance leases, to support AI customers like OpenAI.

BlackRock’s involvement comes on the heels of its $3 billion deal to acquire GIP, which is expected to close on October 1. GIP, known for its expertise in infrastructure investments, will play a pivotal role in funding the energy and data center expansions needed to power AI advancements.

MGX, which was launched earlier this year with Abu Dhabi’s Mubadala and AI firm G42 as founding partners, will contribute its expertise in tech investments to the partnership. With this collaboration, GAIIP aims to not only solve the infrastructure bottleneck but also ensure these projects are developed with sustainability in mind, aligning with the global push toward greener technology solutions.

The initiative comes at a critical time, as AI continues to reshape industries and companies scramble to secure the necessary resources to remain competitive. As the demand for AI-driven innovations grows, so too does the need for advanced data centers that can handle the immense computing power these technologies require. GAIIP’s ambitious funding goal represents a bold step toward building that future.