BlackRock, GIP and MGX complete $40 billion data centre deal to boost AI development: Report

A consortium comprising BlackRock, Global Infrastructure Partners and Abu Dhabi fund MGX has secured a $40 billion (approximately ₹3,52,380 crore) acquisition of one of the world’s largest data centre operators, as per a report in the Financial Times.

The investment consortium also features Nvidia, Microsoft and xAI. It is set to purchase Texas-based Aligned Data Centers from Macquarie Asset Management, marking its inaugural deal since the alliance was established last year, the report added.

The investment consortium plans to leverage a $100 billion (about ₹8,80,950 crore) capital fund, known as the AI Infrastructure Partnership, to bring together the strengths of major technology firms and specialised investment entities.

As per the report, the collaboration aims to rapidly establish new data centres by ensuring access to essential funding, advanced chips, industrial resources and energy supplies, as the growing appetite for AI computing power exceeds current infrastructure limits.

Among the consortium’s supporters are Singapore’s sovereign wealth fund Temasek and the Kuwait Investment Authority. Key suppliers to data centre producers, including GE Vernova, utility company NextEra Energy, and Cisco, are also part of the group.

The partnership aims to use a blend of substantial investment funds and the specialised technical expertise of its members to address shortages of land, energy, and materials required to construct large data centres for companies like OpenAI, Google and Meta Platforms.

The consortium has allocated around $30 billion (approximately ₹2,64,285 crore) in equity and an additional $70 billion (about ₹6,16,665 crore) in borrowed funds to acquire and develop data centre businesses.

Its proposed purchase of Aligned Data Centers marks the opening move in what may become a wave of major takeovers and expansion projects across the industry, the report notes.

The consortium intends to rapidly grow Aligned over the next few years, aiming to more than double its 50 data centre campuses across the US and Latin America.

BlackRock CEO Larry Fink explained to Financial Times that the data centre partnership intends to construct and lease highly specialised facilities to major technology firms, allowing them to avoid the cost and complexity of developing their own sites.Read about our editorial guidelines and ethics policy