Microsoft and BlackRock are setting up a $30 billion fund to build data centres and energy projects to help meet the AI sector’s voracious energy needs.
The investment vehicle, known as Global AI Infrastructure Investment Partnership, aims to help enhance AI supply chains and energy sourcing, BlackRock and Microsoft said.
AI models, especially those used for deep learning and large-scale data processing, require substantial computational power, leading to higher energy consumption.
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The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching power, leading to a surge in the demand for these specialised data centres.
MGX, the Abu Dhabi-backed investment company, will be a general partner in the fund, while AI chip firm Nvidia will provide expertise.
The partnership will mobilise up to $100 billion in total investment potential when including debt financing, the companies said.
The investments will be chiefly in the United States and the remainder in its partner countries, according to the companies.
The Financial Times had first reported on the development.
- Reuters with additional editing by Sean O’Meara
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