MGX joins consortium to invest $100b in global AI infrastructure
MGX joins consortium to invest $100b in global AI infrastructure
BlackRock, GIP, Microsoft & MGX form investment partnership
#AIinfrastructure #investment - BlackRock, Global Infrastructure Partners (GIP), Microsoft, and Abu Dhabi’s global technology investment company MGX have launched the Global AI Infrastructure Investment Partnership (GAIIP) to invest up to $100 billion in AI data centres and supporting energy infrastructure. This partnership aims to enhance U.S. competitiveness in AI by mobilising $30 billion in private equity in the short term, with NVIDIA contributing expertise for AI centres and factories.
SO WHAT? - Soaring global demand for high-end data centre infrastructure to support artificial intelligence has prompted a global land-grab for data centre contracts and installations. The growth in data usage and powerful AI systems to leverage that data has resulted in both an increase in new data centre operators and ongoing consolidation as larger operators acquire other operators to expand their international capacity. So, the formation of a global investment consortium with BlackRock, Global Infrastructure Partners (GIP), Microsoft, and Abu Dhabi’s MGX comes as no surprise. MGX is a natural fit here, being able to draw on funding, AI expertise and data centre know-how at home in the UAE.
Some noteworthy points regarding the formation of GAIIP:
BlackRock, Global Infrastructure Partners (GIP), Microsoft, and MGX have launched the Global AI Infrastructure Investment Partnership (GAIIP) to invest up to $100 billion in data centres and supporting energy infrastructure. GAIIP will initially raise $30 billion in private equity.
NVIDIA was announced as a technology partner for GAIIP, leveraging its expertise for AI centers and factories.
GIP, a leading global infrastructure investor, has already been involved in multiple deals with Abu Dhabi, including with ADNOC, Abu Dhabi Investment Authority (ADIA) and Mubadala.
Last month media reported that MGX, joined a GIP-led bid for Australia’s hyperscale data centre AirTrunk, which could exceed A$20 billion dollars ($12.87 billion).
Microsoft is already well-connected with MGX, via its recent $1.5 billion investment in Abu Dhabi’s G42 and is planning a number of large scale data centres in different countries together with the AI group.
BlackRock recently opened an office in Abu Dhabi, bringing the global asset manager a step closer to UAE investors.
ZOOM OUT - Already a global hot spot for data centre infrastructure, the UAE has ambitious plans for AI data centre projects in Azerbaijan, Egypt, Greece, India, Indonesia, Kazakhstan, Kenya, Malaysia and the Philippines, and Uzbekistan. G42 group has been confirmed as the primary contractor for a number of these agreements including the 2 Gigawatt data centre in India announced by G42 last week, and the 1 GW data centre for Kenya announced by G42 and Microsoft in May. As UAE-backed data centre infrastructure continues to be built out via agreements with key foreign trade partners, there may well be synergies with Global AI Infrastructure Investment Partnership (GAIIP) and other global investment groups.
Read more about G42 and MGX:
G42 to deploy 2GW data centre & supercomputer in India (Middle East AI News)
Microsoft & G42 announce $1b digital investment in Kenya (Middle East AI News)
UAE could invest billions in overseas data centres (Middle East AI News)
Abu Dhabi forms global technology investment company (Middle East AI News)