The collaboration between the United Arab Emirates’ MGX investment vehicle and global partners aims to build the infrastructure needed to support the rapidly expanding artificial intelligence industry. According to an announcement made on Tuesday, private equity capital will be used to generate up to $100 billion in investments over time. This joint effort represents one of the largest AI infrastructure funding initiatives to date, highlighting the critical role of data warehouses and energy projects in advancing AI applications across industries worldwide.
A Global Initiative to Build AI Data Centres
At the core of this initiative is the Global AI Infrastructure Investment Partnership, which has been under development for several months. BlackRock CEO Larry Fink emphasized the monumental investment required to meet the demands of AI infrastructure, stating, “Financing the global buildout of data centres will demand trillions of dollars over time.” The partnership involves key players in capital markets, technology, and investment sectors, all working together to support the rapid expansion of AI infrastructure.
Notably, Global Infrastructure Partners, which is set to be acquired by BlackRock for approximately $12.5 billion, and Abu Dhabi’s MGX—a newly formed investment vehicle focused on AI—are significant contributors to the partnership.
NVIDIA, the leading chipmaker, is also contributing by providing critical technology and networking solutions essential for accelerating the development of AI systems. Their expertise in AI data centres and AI factories is key to driving the venture forward.
Energy Projects Power AI Infrastructure Growth
As the need for AI data centres grows, so does the demand for energy, particularly in the United States, where these facilities are rapidly expanding. The funds from this partnership will also be invested in energy projects, both in the US and among its global partners. Fink noted that attracting additional investors won’t be an issue due to strong interest from pension funds and insurers seeking long-term infrastructure opportunities.
The surge in AI technology development is already putting pressure on energy providers, with experts predicting that the electricity consumption of AI data centres could increase tenfold by 2030. To accommodate this demand, energy companies are delaying the closure of coal and gas plants, while ramping up efforts to expand renewable energy projects, including solar and wind farms.
Expanding AI Capabilities and Energy Resources
Microsoft, a major player in AI, has already invested $13 billion into AI research in collaboration with OpenAI. The company has been integrating AI capabilities across its products and remains committed to expanding AI infrastructure. However, a shortage of data centre capacity and chips has limited its ability to serve AI customers, underscoring the need for increased infrastructure investment.
In response, Microsoft is working closely with OpenAI CEO Sam Altman to expand computing infrastructure, indicating that the race to meet AI’s growing energy and infrastructure requirements is already in motion. This partnership with BlackRock, MGX, and others could serve as a pivotal step toward addressing the power and infrastructure demands that will shape the future of AI technologies globally.
