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Microsoft + Blackrock + MGX to launch USD 30 bn AI infrastructure fund: Mubadala’s Abu Dhabi-based AI investment company MGX, Investment firm BlackRock, private equity firm Global Infrastructure Partners (GIP), and tech-giant Microsoft are launching the Global AI infrastructure investment partnership (GAIIP) to boost data center capacity, according to a statement released last week. The move looks to expand global data center capacity in response to the rising demand for computing power.
What we know: Under the partnership, the group looks to unlock USD 30 bn in private equity capital from investors, asset owners, and corporates, the statement said. The partnership will in turn generate, including debt financing, up to USD 100 mn in total investment potential. The partnership will also be plugging investments into energy infrastructure, primarily in the US, and new sources of power for these facilities. Multinational software firm Nvidia is slated to provide its expertise in AI data centers and AI factories to the partnership, to propel efficient scaling of data centers.
What they said: “Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity,” BlackRock CEO and Chairman Larry Fink said in the statement. The group will be “committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” Microsoft CEO Satya Nadella added.
Not the first move: MGX reportedly joined a consortium last month led by IFM Investors, DigitalBridge, Silver Lake Management, and GIP to bid for Australian data center operator AirTrunk. The sale of AirTunk is expected to be one of the largest digital infrastructure transactions in Asia Pacific this year. AirTrunk kicked off the sale process in March, seeking around USD 20 bn, with at least two bidders in the fray.
REMEMBER- MGX, formed last March by the Artificial Intelligence and Advanced Technology Council, is targeting more than USD 100 bn in assets under management in a few years. The company was reportedly also looking to invest in OpenAI’s new AI chip and power production venture, which is estimated to require some USD 7 tn.
