BlackRock Inc. and Microsoft Corp. are joining forces in one of the largest projects to fund the development of data centers and energy infrastructure that is powering the current artificial intelligence (AI) boom. Together with Abu Dhabi-based MGX Investment Fund, the companies plan to raise $30 billion in capital, which could potentially grow to $100 billion through additional investment and leverage. [1]
Global AI Infrastructure Investment Partnership
BlackRock and Microsoft have launched this project under the name Global AI Infrastructure Investment Partnership. BlackRock CEO Larry Fink said the initiative has been in the works for several months and represents a significant opportunity for capital markets to build infrastructure for new technologies. A large portion of the investment is expected to go to projects in the U.S., with expansion to U.S. partner countries, providing opportunities for long-term investors.
Growing demand for AI infrastructure
Brad Smith, vice president and president of Microsoft, emphasized that AI is becoming the new general technology that will drive growth in every sector of the economy. Microsoft has already invested $13 billion in AI research within the OpenAI Lab and is working on a large-scale upgrade of its product line to include AI features. The company is also significantly increasing its investments in data centers and computing infrastructure, which is essential to cope with the growing demand for AI services.
Energy challenge
The energy needs of AI data centers are growing significantly, with electricity consumption expected to increase up to tenfold by 2030. As companies want to meet demand, there has been a delay in the decommissioning of coal and gas power plants, with plans to build new facilities and expand clean energy capacity, such as solar and wind power plants. At the same time, this growing demand for electricity is increasing the time it takes to connect new data centers to the grid.
Conclusion and investment opportunity
The collaboration between BlackRock and Microsoft presents a significant opportunity for investors looking to gain exposure to the growing AI infrastructure. With the aim of financing up to $100 billion worth of projects, this initiative focuses on building new data centers and expanding energy capacity, which will help maintain U.S. leadership in artificial intelligence.
This strategic move reflects the enormous potential that AI brings and highlights the importance of building infrastructure as a fundamental pillar for further technological advancements. For investors interested in long-term infrastructure projects with high growth potential, this cooperation represents an attractive opportunity for capital appreciation. [2]
[1], [2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
