BlackRock, Global Infrastructure Partners, Microsoft, and MGX Launch New AI Partnership to Invest in Data Centers and Supporting Power Infrastructure

Rhea-AI Summary

BlackRock, Global Infrastructure Partners (GIP), Microsoft, and MGX have launched the Global AI Infrastructure Investment Partnership (GAIIP) to invest in data centers and supporting power infrastructure. The partnership aims to unlock $30 billion in private equity capital, potentially mobilizing up to $100 billion in total investment. GAIIP will focus on expanding AI infrastructure, primarily in the United States, to fuel innovation and economic growth.

Key aspects of the partnership include:

• Investment in new and expanded data centers to meet growing demand for computing power
• Development of energy infrastructure to power these facilities
• Support for an open architecture and broad ecosystem
• Collaboration with NVIDIA for expertise in AI data centers
• Engagement with industry leaders to enhance AI supply chains and energy sourcing

Positive

• Potential to mobilize up to $100 billion in total investment for AI infrastructure
• Focus on expanding data centers and energy infrastructure in the United States
• Partnership with industry leaders including Microsoft and NVIDIA
• Aims to drive innovation, technological breakthroughs, and productivity gains
• Potential for long-term investment benefits for BlackRock (BLK) clients

Negative

• None.

Insights

Financial Analyst

This partnership represents a significant investment opportunity in the rapidly growing AI infrastructure sector. With an initial target of $30 billion in private equity capital, potentially leveraging up to $100 billion in total investments, the scale is impressive. The involvement of major players like BlackRock, Microsoft and NVIDIA adds credibility and expertise to the venture.

From an investor's perspective, this initiative offers exposure to a high-growth area with potential for substantial returns. The focus on data centers and supporting energy infrastructure addresses critical bottlenecks in AI development. However, investors should be aware of the long-term nature of these investments and potential regulatory risks in the AI sector.

The partnership's emphasis on sustainability and economic growth could also attract ESG-focused investors. Overall, this represents a unique opportunity to participate in the foundational infrastructure of the AI revolution, with potential for both financial returns and broader economic impact.

Tech Expert

This partnership is a game-changer for AI infrastructure development. The $100 billion investment potential could significantly accelerate the growth of computing power necessary for advanced AI applications. The involvement of Microsoft and NVIDIA ensures access to cutting-edge technology and expertise in AI data centers.

The focus on an open architecture and broad ecosystem is crucial. It promotes innovation and competition, potentially leading to faster advancements in AI capabilities. The emphasis on energy infrastructure is also noteworthy, addressing the massive power requirements of AI computing.

However, the success of this initiative will depend on effective execution and the ability to navigate the rapidly evolving AI landscape. The partnership will need to balance the need for quick infrastructure deployment with the flexibility to adapt to emerging technologies and changing AI requirements.

Market Research Analyst

This partnership signals a major shift in the AI infrastructure market. The $100 billion investment potential could significantly alter the competitive landscape, potentially creating new market leaders and reshaping existing supply chains. The focus on the United States and partner countries suggests a geopolitical dimension to AI infrastructure development.

The initiative's scale could lead to economies of scale in data center construction and operation, potentially lowering costs for AI compute resources. This could accelerate AI adoption across various industries, creating new market opportunities. The partnership's open architecture approach may also foster a more diverse and competitive ecosystem of AI service providers.

Investors should monitor how this initiative impacts existing players in the data center and AI infrastructure space, as well as its effects on energy markets given the focus on power infrastructure. The partnership's success could set new standards for AI infrastructure investment and development globally.

$100 billion investment potential will enhance American competitiveness in AI while meeting the growing need for energy infrastructure to power economic growth

NEW YORK & REDMOND, Wash. & ABU DHABI, United Arab Emirates--(BUSINESS WIRE)-- The drive to develop more powerful AI capabilities will require significant infrastructure investment to support it. Today, BlackRock, Global Infrastructure Partners (GIP), Microsoft, and MGX announced the Global AI Infrastructure Investment Partnership (GAIIP) to make investments in new and expanded data centers to meet growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities. These infrastructure investments will be chiefly in the United States fueling AI innovation and economic growth, and the remainder will be invested in U.S. partner countries.

This partnership will support an open architecture and broad ecosystem, providing full access on a non-exclusive basis for a diverse range of partners and companies. NVIDIA will support GAIIP, offering its expertise in AI data centers and AI factories to benefit the AI ecosystem. GAIIP will also actively engage with industry leaders to help enhance AI supply chains and energy sourcing for the benefit of its customers and the industry. The partnership will initially seek to unlock $30 billion of private equity capital over time from investors, asset owners, and corporates, which in turn will mobilize up to $100 billion in total investment potential when including debt financing.

The founders of the partnership bring together leading global investors BlackRock, GIP, and MGX, an artificial intelligence and advanced technology investor, with funding as well as expertise from Microsoft. GAIIP combines deep understanding of infrastructure and technology to drive efficient scaling of data centers, with energy, power, and decarbonization investment capabilities for related enabling infrastructure for AI.

His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of MGX, emphasized the importance of AI for the future of our economies: “Artificial intelligence is not just an industry of the future, it underpins the future. Through this unique partnership, we will enable faster innovation, technological breakthroughs and transformational productivity gains across the global economy. The investments we make today will secure a more sustainable, prosperous and equitable future for all mankind.”

“Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity,” said Larry Fink, Chairman and CEO of BlackRock. “Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation.”

“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” said Satya Nadella, Chairman and CEO, Microsoft. “The Global AI Infrastructure Investment Partnership will help us deliver on this vision, as we bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way.”

“The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance,” said Brad Smith, Vice Chair and President of Microsoft. “This financial partnership will not only help advance technology, but enhance national competitiveness, security, and economic prosperity.”

“Building the necessary infrastructure required to advance and accelerate the adoption of AI will reshape and revitalize almost every aspect of how we live,” said Ahmed Yahia Al Idrissi, CEO of MGX. “Similar to our transportation infrastructure, new data centers and power sources will enable growth and commerce in the future innovation economy.”

“There is a clear need to mobilize significant amounts of private capital to fund investments in essential infrastructure. One manifestation of this is the capital required to support the development of AI,” said Bayo Ogunlesi, Chairman and CEO of Global Infrastructure Partners. “We are highly confident that the combined capabilities of our partnership will help accelerate the pace of investments in AI-related infrastructure.”

“Accelerated computing and generative AI are driving a growing need for AI infrastructure for the next industrial revolution,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA will use its expertise as a full stack computing platform to support GAIIP and its portfolio companies on the design and integration of AI factories to propel industry innovation.”

MGX was created in Abu Dhabi earlier this year to invest in AI and advanced technologies with global partners to enable the technology fabric of the global economy, focusing on AI infrastructure; AI-enabled technology; and semiconductors. Today’s announcement is a major partnership within those segments, building on the emirate’s longstanding investment track record in data centers, compute capacity, and enabling infrastructure.

Significant structural forces are creating opportunities for private capital to partner with corporations and governments to provide financing for critical infrastructure needs. BlackRock has a broad network of corporate relationships as a long-term investor in their debt and equity, and GIP specializes in investing in, owning, and operating some of the largest and most complex infrastructure assets in the world. These combined capabilities position BlackRock as a world leading investment platform to make these critical investments in data centers and related infrastructure, mobilizing private capital to support economic growth and job creation while generating long-term investment benefits for its clients.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate

About Global Infrastructure Partners (GIP)

Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. On September 13, 2024, BlackRock issued a press release announcing that it expects to close its previously announced acquisition of GIP on October 1, 2024, subject to customary closing conditions, including the receipt of specified regulatory approvals and clearances. For more information, visit www.global-infra.com

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

About MGX

MGX is a technology investment company focused on accelerating the development and adoption of AI and advanced technologies through world-leading partnerships in the United Arab Emirates (UAE) and globally. MGX invests in sectors where AI can deliver value and economic impact at scale, including semiconductors, infrastructure, software, tech-enabled services, life sciences, and automation.

Forward-Looking Statements

This press release, and other statements that the parties may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the parties’ or the GAIIP’s future financial or business performance, strategies or expectations, including the anticipated timing, consummation and expected benefits of the GAIIP. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

The parties caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any projections or forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and the parties assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

Certain of the parties have previously disclosed risk factors in their respective United States Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from forward-looking statements or historical performance. Such parties’ Annual Reports on Form 10–K, Quarterly Reports on Form 10-Q and subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on the applicable party’s website, discuss certain of these factors in more detail and identify additional factors that can affect forward–looking statements. The information contained on each party’s website is not a part of this press release, and therefore, is not incorporated herein by reference.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240917764857/en/

Media

BlackRock Media Relations

Ed Sweeney

646-231-0268

Ed.Sweeney@BlackRock.com

Global Infrastructure Partners (GIP) Media Relations

Mustafa Riffat

646-216-7788

Mustafa.Riffat@global-infra.com

Microsoft Media Relations

WE Communications for Microsoft

425-638-7777

rapidresponse@we-worldwide.com

MGX Media Relations

Brian Lott

+971 55 7007666

blott@mubadala.ae

Source: BlackRock

FAQ

What is the Global AI Infrastructure Investment Partnership (GAIIP) announced by BlackRock (BLK)?

GAIIP is a partnership between BlackRock, Global Infrastructure Partners, Microsoft, and MGX to invest in data centers and supporting power infrastructure for AI development, with a potential to mobilize up to $100 billion in total investment.

How much initial private equity capital does GAIIP aim to unlock?

GAIIP aims to initially unlock $30 billion of private equity capital over time from investors, asset owners, and corporates.

What is the primary focus of GAIIP's investments?

GAIIP will primarily focus on investing in new and expanded data centers in the United States to meet growing demand for computing power, as well as energy infrastructure to power these facilities.

How will NVIDIA support the Global AI Infrastructure Investment Partnership?

NVIDIA will offer its expertise in AI data centers and AI factories to benefit the AI ecosystem and support GAIIP and its portfolio companies on the design and integration of AI factories.

What potential impact does BlackRock (BLK) expect from this AI infrastructure investment?

BlackRock expects these investments to unlock a multi-trillion-dollar long-term investment opportunity, power economic growth, create jobs, and drive AI technology innovation.