Microsoft Corp. is utilizing its partnership with BlackRock to co-fund and accelerate its artificial intelligence (AI) infrastructure development, thereby reducing the direct financial burden on its own funds. BlackRock has successfully raised $12.5 billion towards its total goal of $30 billion for its AI infrastructure partnership with Microsoft.
BlackRock is focusing its investments on the power grids and energy sources essential for operating modern data centers. These facilities require such a substantial and constant supply of high-voltage power that industry experts estimate data centers could consume up to 4% of all global energy by the year 2029.
BlackRock's Support for Microsoft's AI Initiatives
BlackRock Inc. has raised $12.5 billion as part of its significant "Global AI Infrastructure Investment Partnership" with Microsoft Corp. The firm is progressing towards its $30 billion target for private equity investment in this venture.
The company has combined the expertise of Global Infrastructure Partners (GIP) with Microsoft's technological capabilities to address the "energy bottleneck" that poses a threat to the pace of AI development. Larry Fink, speaking to analysts, stated that mobilizing private capital for these projects is the only viable method to meet the escalating demand, as the associated costs are too substantial for any single government or company to bear independently.
BlackRock CEO Larry Fink elaborated to analysts during a fourth-quarter earnings call that the AI partnership continues to attract considerable investment from individuals and entities seeking to capitalize on the current technology boom.
BlackRock recently reported that its total assets under management have reached $14 trillion for the first time, driven by record net inflows of nearly $700 billion throughout the full year of 2025. Fink characterized the current period as one of "accelerating momentum."
He further noted that clients are increasingly approaching BlackRock to manage complex infrastructure projects that necessitate billions of dollars in upfront capital investment.
Investment in Physical AI Infrastructure
Microsoft recently entered into a 20-year agreement with Constellation Energy to recommission a nuclear reactor at Three Mile Island in Pennsylvania. This project, named the Crane Clean Energy Center, is designed to supply carbon-free electricity to Microsoft's data centers.
Investments of this nature in AI infrastructure have impacted Microsoft's stock performance, with its shares declining to $459 from a peak of $555 in 2025. Investors have expressed concern regarding the company's strategy following its expenditure of nearly $35 billion in a single quarter to construct AI infrastructure.
Through its partnership with BlackRock, Microsoft will be able to scale and advance its AI technology without placing the entire financial responsibility on its own balance sheet.
Meta has also recently announced its own agreements with three nuclear energy companies to secure 6.6 gigawatts of power.
BlackRock's partnership with Microsoft also includes Nvidia Corp. and the Abu Dhabi-backed investment group MGX. Furthermore, Elon Musk's xAI joined the partnership in early 2025.
Nvidia is contributing as a technical advisor, assisting in the design of data centers to optimize them for AI chips, while MGX is providing substantial capital from the United Arab Emirates.
This collaborative effort enables the group to utilize "leverage," which involves taking on debt to enhance their overall spending capacity. While the initial objective is $30 billion in private equity, the partnership anticipates reaching a total of $100 billion in investments. This funding will be predominantly allocated to projects within the United States, with a portion also directed to U.S. partner countries.