BlackRock and Microsoft plan $30 billion fund to invest in AI

A BlackRock is about to launch a investment fund em artificial intelligence of more than US$ 30 billionin partnership with the technology giant Microsoftwith the aim of building data centers and projects of energy to meet the growing demands of AI, according to sources close to the matter.

According to the Financial Timesthe fund, developed by BlackRock’s new infrastructure investment unit, the Global Infrastructure Partners (GIP)will be one of the largest ever seen in Wall Street. In addition to Microsoft, MGXan Abu Dhabi-backed investment firm, is also a general partner in the fund. The Nvidiaa fast-growing chipmaker, will contribute its technical expertise, the sources said.

This new investment vehicle will be aimed at addressing the challenges posed by the growing demand for energy e digital infrastructure required for the development of AI products. In the coming years, current energy infrastructure capacity is expected to be overwhelmed, as the computing power required by AI is much greater than that of previous technological innovations.

This will be the first major fund of GIP since the private infrastructure investment firm was acquired by BlackRock for US$ 12.5 billion earlier this year. The deal is expected to close on October.

A BlackRockthe world’s largest fund manager, has identified the energy sector as one of its biggest growth opportunities. In a letter to investors earlier this year, CEO Larry Fink highlighted: “In my nearly 50 years in finance, I have never seen such demand for energy infrastructure.”

This fund is yet another example of how large asset managers are moving to meet the growing need for energy for Generative AI e cloud computing. Earlier this year, Microsoft had already committed to US$ 10 billion in renewable electricity projects, developed by Brookfield Asset ManagementCanada. Microsoft also has a goal to ensure that by 2030, all of its energy consumption is offset by energy purchases carbon-zero.

Brad Smithpresident of Microsoft, commented: “The country and the world will need more capital investment to accelerate the development of the necessary AI infrastructure. This effort is an important step.”

In 2017, in Blackstone had already announced an infrastructure fund US$ 40 billion with support from Saudi Arabia, and last year the Brookfield got up US$ 28 billion for what was considered the largest infrastructure fund in history.

A International Energy Agency estimates that global electricity consumption per data centers may exceed 1,000 terawatt-hours by 2026, more than double the consumption of 2022. In USAwhich house a third of the world’s data centers, electricity demand is growing rapidly for the first time in two decades, in part due to these energy-intensive facilities. A report by Grid Strategies showed that projections for growth in U.S. electricity demand over the next five years have nearly doubled in the past year, rising from 2.6% to 4.7%.

Nvidia e MGX did not immediately respond to requests for comment, while the BlackRock declined to comment.