BlackRock, Microsoft-Backed AI Venture Draws US$12.5 Billion

The capital raise advances a long-term fundraising target of US$30 billion, set when the partnership was unveiled in 2024. It positions the venture as one of the largest private efforts aimed at financing AI-related infrastructure globally.

With the use of leverage, BlackRock, the world’s largest asset manager, has said the platform could ultimately support as much as US$100 billion in total investment, as per Bloomberg.

The partnership also brings together BlackRock and its infrastructure unit Global Infrastructure Partners alongside Microsoft, Abu Dhabi-based investment vehicle MGX, NVIDIA (NASDAQ:NVDA) and xAI.

The group is focused on funding new and expanded data centers, as well as the energy infrastructure required to power them, with the bulk of initial investments expected to be made in the US.

BlackRock’s latest Investment Directions report, which looks forward to 2026, indicates that energy and power infrastructure will become a primary beneficiary of AI-driven growth over the coming years.

The firm surveyed 732 clients in Europe, the Middle East and the Africa for the report, finding that while AI remains central to investment thinking, enthusiasm for large US technology firms has cooled.

Only about one-fifth of respondents identified big tech as a compelling opportunity for 2026, signaling a shift after the strong rally in AI-related equities in 2025. Instead, investors increasingly see power generation, grid upgrades and related infrastructure as offering more durable returns as data center demand accelerates.

The AI infrastructure partnership was launched last year amid growing concern that constraints in electricity supply and grid capacity could slow the rollout of next-generation computing facilities.

By combining private equity capital with debt financing, the venture aims to scale investment quickly while spreading risk across a broad group of institutional backers.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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