(Reuters) – BlackRock and Microsoft (NASDAQ:) have announced their plans to launch a fund exceeding $30 billion to invest in artificial intelligence infrastructure for the development of data centers and energy projects. This initiative aims to address the increasing computational power requirements of AI models, particularly those utilized for deep learning and large-scale data processing, which result in higher energy consumption.
The demand for specialized data centers has surged as tech companies are compelled to connect thousands of chips in clusters to meet the necessary data crunching power for AI. The Global AI Infrastructure Investment Partnership, the investment vehicle established by BlackRock (NYSE:) and Microsoft, is designed to enhance AI supply chains and energy sourcing.
As part of the fund, MGX, an investment company backed by Abu Dhabi, will serve as a general partner, while AI chip firm Nvidia (NASDAQ:) will provide expertise. The partnership has the potential to mobilize up to $100 billion in total investment, including debt financing.
The investments will primarily be focused in the United States, with additional allocations in partner countries, as per the companies. The Financial Times was the first to report on this collaboration.