BlackRock, Nvidia and Microsoft lead $40B deal to expand AI data infrastructure
News Summary
A consortium including BlackRock, Nvidia, Microsoft, and xAI has announced a $40 billion acquisition of Aligned Data Centers, one of the world’s largest data-centre operators. This move marks the first major action by the AI Infrastructure Partnership (AIP), aiming to combine investment power with technological expertise to create the physical backbone for artificial intelligence and meet surging demand for computing capacity. The deal, comprising $30 billion in equity and $70 billion in debt, will fund future acquisitions and construction, with plans to more than double Aligned’s 50 campuses across the US and Latin America. The consortium also includes sovereign wealth funds like Abu Dhabi’s MGX, Singapore’s Temasek, and the Kuwait Investment Authority, alongside key suppliers such as GE Vernova, NextEra Energy, and Cisco, ensuring access to essential industrial materials and power systems. This acquisition reflects growing investor appetite for digital infrastructure amidst the AI boom and signals a shift by technology companies from owning to leasing high-performance data center capacity, enabling them to optimize balance sheets and maintain higher valuations.
Background
In the current year 2025, the rapid advancement of artificial intelligence has led to unprecedented demand for computing capacity, consequently driving immense demand for data center infrastructure. Global data center demand is estimated at roughly 20 gigawatts per year, with half of that coming from the US market, leading to global shortages in land, power, and raw materials. To address this challenge, the AI Infrastructure Partnership (AIP) was established last year to mobilize up to $100 billion for developing AI-ready data infrastructure. Concurrently, there's a shift in digital infrastructure financing models, with technology companies increasingly turning to partnerships like AIP to lease high-performance data center capacity rather than building and owning facilities themselves. BlackRock's CEO, Larry Fink, noted that this initiative allows AI and cloud leaders to access specialized facilities without weighing down their balance sheets, helping them maintain higher stock valuations.
In-Depth AI Insights
What does this colossal investment signal about the long-term capital structure and competitive landscape of AI infrastructure? - This deal highlights the