According to the Financial Times, citing sources, BlackRock is planning to launch a $300 billion AI investment fund in collaboration with tech giant Microsoft. The fund will invest in data centers and energy projects to meet the growing demand for electricity and infrastructure required by AI.

BlackRock will launch the fund through its new infrastructure investment arm, Global Infrastructure Partners. The fund will be one of the largest investment vehicles ever launched on Wall Street. Microsoft and Abu Dhabi-backed investment firm MGX are the general partners in the fund. Sources also indicated that chipmaker Nvidia will contribute expertise.

The investment vehicle is intended to address the immense demand for electricity and digital infrastructure needed to build AI products. AI requires more energy than previous technological innovations, and existing infrastructure is expected to face severe capacity bottlenecks in the coming years.