Investing.com– Microsoft Corporation (NASDAQ:) and asset manager BlackRock Inc (NYSE:) said they will launch an over $30 billion fund to invest in artificial intelligence infrastructure such as data centers and energy hubs, the two said in a statement on Tuesday.
The partnership will be called the Global AI Infrastructure Investment Partnership, and will invest chiefly in U.S.-based projects to keep AI development within the country.
Microsoft said AI darling NVIDIA Corporation (NASDAQ:) will support the partnership, and that Abu Dhabi investment house MGX will be a general partner in the fund.
The fund plans to mobilize up to $100 billion in total investment when including debt financing.
The move comes as growing interest in AI development pushes the need for more infrastructure to power the industry. The generative AI programs that shot into popularity over the past year require high amounts of computing power, which in turn fuels large energy requirements.
Demand for data centers is expected to pick up substantially as AI demand grows, as is the need for sustainable energy sources.
“The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance,” Brad Smith, Vice Chair and President of Microsoft said in a statement.
Microsoft has leaned heavily into AI over the past year, incorporating it into a slew of its products to varying degrees of success. The company recently said it plans to ramp up capital spending on AI even further over the coming quarters.