An investment consortium featuring prominent firms such as BlackRock, Global Infrastructure Partners (GIP), and the Abu Dhabi fund MGX has successfully executed a $40 billion takeover deal for Aligned Data Centers, one of the largest data center operators worldwide. This acquisition marks the consortium’s first major venture since its formation about a year ago. The consortium’s objective is to bolster the infrastructure necessary for the burgeoning field of artificial intelligence (AI).
The group, which also includes technology giants Nvidia, Microsoft, and xAI, plans to leverage a newly established $100 billion data center capital pool named the AI Infrastructure Partnership. This partnership aims to integrate the resources of major technology companies with specialized investment firms to quickly construct data centers capable of supporting the increasing demands for computing power associated with AI algorithms, which are currently outpacing existing capabilities.
Additional supporters of the consortium include Singapore’s sovereign wealth fund Temasek and the Kuwait Investment Authority, along with major suppliers for data center manufacturers such as GE Vernova, utility company NextEra Energy, and Cisco.
The partnership intends to combine its substantial financial resources with the specific technical expertise of its members to address the pressing challenges of land, energy, and material shortages that need to be overcome to build large-scale data centers for prominent companies like OpenAI, Google, and Meta Platforms. They are committing $30 billion in equity along with an additional $70 billion in debt financing, targeting the acquisition and development of data center entities. The takeover of Aligned Data Centers is merely the first step in what could evolve into a series of significant acquisitions and construction endeavors within the sector. The consortium aims to expand Aligned Data Centers significantly, with plans to more than double its current count of 50 data center campuses in the U.S. and Latin America.
Adebayo Ogunlesi, CEO of GIP, expressed in an interview that the unique partnership aims to tackle essential issues such as optimal data center design, water and energy challenges, and the diverse needs of customers. He emphasized the distinctiveness of this collaboration, stating, “That’s what’s unique about the partnership — it hasn’t been replicated anywhere else.”
Larry Fink, CEO of BlackRock, elaborated on the consortium’s plans to construct and lease specialized data centers to large tech firms rather than allowing these corporations to build the infrastructure themselves. He noted that this strategy would keep data centers off tech companies’ balance sheets, potentially enhancing their stock valuations. Fink also recognized the advantages of previous large acquisitions in private capital, including BlackRock’s $12.5 billion takeover of GIP.
Ahmed Yahia Al Idrissi, CEO of MGX, highlighted the potential for a significant increase in data center capacity in the coming years, stating that the global demand for data center infrastructure—both for cloud services and AI—would be immense. He projected that this demand would require approximately 20 gigawatts of energy per year globally, with about half of that capacity needed in the U.S.
The consolidation and scaling of data center operations signify a pivotal shift in how leading technology companies might strategically approach their infrastructure needs amid the escalating demands for AI capabilities. As this consortium moves forward, its influence on the industry will likely reshape the landscape of data center operations and investments.
