Microsoft, Blackrock partner on AI infrastructure

In a landmark move, Microsoft, BlackRock, Global Infrastructure Partners, and MGX have announced the launch of a $30 billion investment fund dedicated to expanding artificial intelligence (AI) infrastructure. The Global AI Infrastructure Investment Partnership (GAIIP) aims to mobilise up to $100 billion in capital, targeting the development of data centres and supporting energy sources, with a focus on the U.S. and partner countries.

The demand for AI-driven computing has surged as deep learning and large-scale data processing become more prevalent. To support this demand, the partnership will prioritise building energy-efficient data centres capable of handling immense computational needs. Nvidia will also lend its expertise in AI, ensuring the initiative remains on the cutting edge of data centre technology.

As the world increasingly relies on AI, the power requirements of these systems have skyrocketed. The International Energy Agency (IEA) estimates that global energy consumption by data centres, AI, and related sectors could double by 2026. GAIIP’s multi-billion-dollar investment seeks to tackle these challenges by focusing on renewable energy and infrastructure updates, aiming to mitigate the environmental impact of AI development.

Microsoft’s vice chairman, Brad Smith, emphasised the scale of investment needed, stating that the initiative addresses critical infrastructure demands that exceed the capacity of any single company or government. By pooling resources, the coalition aims to enhance national competitiveness, security, and prosperity.

The fund reflects a growing recognition of the need for advanced infrastructure to power AI’s rapid growth. While AI promises transformative potential across industries, its success hinges on investments in both the hardware and energy sectors. With this unprecedented financial commitment, Microsoft and its partners are betting big on the future of AI, aiming to shape its development sustainably and responsibly.