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Microsoft Backs $30B Effort To Build More AI Datacenters

Recognizing the immense infrastructure demands of today's AI technologies, Microsoft is throwing its support behind a new multibillion-dollar datacenter investment fund.

Announced Tuesday, the Global Al Infrastructure Investment Partnership (GAIIP) counts Microsoft among its main backers, as well as investment giants BlackRock and Global Infrastructure Partners (GIP), and recently formed Abu Dhabi-based AI investment firm MGX.

Nvidia, the current leading AI chipmaker, is named as a supporter, and will provide technical expertise and factory space.

"Accelerated computing and generative Al are driving a growing need for Al infrastructure for the next industrial revolution," said Nvidia CEO Jensen Huang in explaining his company's involvement.

By value, the new fund is one of the largest AI investments efforts to date. "The partnership will initially seek to unlock $30 billion of private equity capital over time from investors, asset owners, corporates, which in turn will mobilize up to $100 billion in total investment potential when including debt financing," the companies said.

GAIIP will focus its investments around building new datacenters to accommodate the massive compute power that modern AI workloads demand, as well as the energy infrastructure to power them. It aims to build a "broad ecosystem" of non-exclusive partnerships and an "open architecture" for energy-efficient datacenters.

It will primarily target its investments to support U.S.-based datacenter buildouts, as well as similar projects in partner countries. Increasingly, the U.S. government has been championing homegrown production of AI-optimized hardware, putting significant money into the effort.

"Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive Al technology innovation," said BlackRock CEO Larry Fink.

The fund's U.S. focus will "enhance national competitiveness, security, and economic prosperity," added Microsoft President Brad Smith.

Microsoft has committed many billions of dollars this year so far to expanding its datacenter footprint, both in the United States and abroad. With user demand for its Copilot AI solutions on the rise, Microsoft has sought outside support to buttress its existing infrastructure, including Lumen for its datacenter networking expertise and Oracle for its cloud capacity.

Smith noted, "The capital spending needed for Al infrastructure and the new energy to power it goes beyond what any single company or government can finance."

About the Author

Gladys Rama (@GladysRama3) is the editorial director of Converge360.

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