According to the Financial Times, BlackRock is planning to launch a $30 billion AI investment fund with tech giant Microsoft. The fund will be used to build data centers and energy projects to meet the growing need for power and infrastructure driven by artificial intelligence. BlackRock will launch the fund through its new infrastructure investment arm, Global Infrastructure Partners. It will be one of the largest investment vehicles on Wall Street. Microsoft and MGX, an Abu Dhabi-backed investment company, are general partners in the fund. Sources also say that chipmaker Nvidia will provide expertise.

The investment vehicle aims to address the massive demand for power and digital infrastructure required to build AI products. AI computing demands far more energy than previous technological innovations, and existing infrastructure is expected to face significant capacity constraints in the coming years.