Giant tech company Microsoft joins forces with BlackRock to announce a massive $30 billion investment deal in artificial intelligence infrastructure.

BlackRock, Microsoft, and MGX have joined forces to launch an ambitious $30bn AI infrastructure investment fund. This partnership comes as the increasing energy consumption of AI threatens to derail Microsoft's ambitious decarbonisation targets.

Microsoft, with its commitment to be carbon negative by the end of the decade, has acknowledged that its emissions have risen by almost a third since 2020. Brad Smith, vice chair and president of Microsoft, stated that the financial partnership will enhance national competitiveness, security, and economic prosperity.

The partnership aims to address the large power and digital infrastructure demand of AI, including Microsoft's needs. The fund's goal is to build data centers and energy projects to meet the growing demand of AI, including potential projects from Microsoft.

Larry Fink, chairman and CEO of BlackRock, stated that mobilizing private capital for AI infrastructure could unlock a multi-trillion-dollar long-term investment opportunity. The fund aims to raise up to $100bn in total investment capacity, including debt financing.

Microsoft has agreed to back $10bn in renewable energy projects built by Canada's Brookfield Asset Management. The company has also committed to ensuring 100% of its energy consumption is matched by zero carbon energy purchases by 2030.

The partnership is not only about powering AI but also about addressing its environmental impact. The biggest threat to AI datacentres is electrical power. The fund is designed to address this challenge by investing in renewable energy and energy-efficient technologies.

The amount of electricity consumed by AI is forecast to exceed 85 terawatt hours annually within a couple of years. This partnership is a significant step towards meeting this demand in a sustainable way.

It's worth noting that MGX, a partner in this infrastructure investments fund, has significantly reduced its emissions over time. This partnership underscores the commitment of all three companies to sustainable development and climate action.

In conclusion, the partnership between BlackRock, Microsoft, and MGX is a significant stride towards powering AI's future while meeting climate goals. It's a testament to the potential of private sector collaboration in driving sustainable development and combating climate change.

Giant tech company Microsoft joins forces with BlackRock to announce a massive $30 billion investment deal in artificial intelligence infrastructure.