Blackrock, Microsoft and the Abu Dhabi sovereign wealth fund want to invest together in data centers. This could lead to discussions at the important internet hub in Frankfurt.
The weather was quite grey and cool for a summer reception, but Blackrock Germany boss Dirk Schmitz was still in a great mood. In a brief outlook on business in the DACH region (Germany, Austria, Switzerland) for which he is responsible, he highlighted two investment priorities these days: decarbonization and data centers for artificial intelligence (AI).
In Frankfurt, the second focus was hardly surprising, as the asset manager invested in the data center subsidiary Mainova WebHouse of the regional energy supplier Mainova this summer and acquired a small majority in the company. Mainova is controlled by the city of Frankfurt.
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But it is now clear that the entry was not news for Frankfurt’s local media, but that data centers are of strategic importance for the world’s largest asset manager. This week, it announced a partnership with the aim of setting up a $30 billion infrastructure fund to invest in data centers and energy projects that are necessary to apply artificial intelligence (AI).
According to Blackrock, its partners are the software company Microsoft and MGX, a technology-focused investment subsidiary of Mubadala Investments, the sovereign wealth fund of the oil-rich Gulf emirate of Abu Dhabi. Also on board is the AI chip manufacturer Nvidia, which is expected to provide its expertise.
“The announcement of this partnership is a first step towards mobilizing large-scale private capital to meet these critical infrastructure needs. We look forward to sharing more about this initiative in the near future,” Blackrock said in response to a request. Microsoft Germany and Mubadala did not respond to Capital’s inquiries about the structure of the fund.
Beyond the news, Blackrock did not want to give any details about the planned fund. It is therefore not yet clear who will provide how much money. However, there is talk of raising up to 100 billion dollars through additional borrowing. In addition, investments will primarily be made in the USA, and only then possibly in Europe.
World’s largest internet exchange
And that’s where Frankfurt comes into play, or rather into the discussion. The world’s largest internet node in terms of data throughput is located here. Numerous data centers are located in the Main metropolis, particularly in the districts of Seckbach and Rödelheim. However, the investment in Mainova Webhouse is not affected by the planned fund, explained a Blackrock spokeswoman. “The new fund has nothing to do with the Mainova investment, it is in a different fund.” She could not say which one it was.
The question remains whether the planned AI fund will then invest in new data centers in Frankfurt. This could trigger political discussions in Germany, as the sovereign wealth fund of the authoritarian Abu Dhabi would participate in the internet node and thus in critical infrastructure.
There were already discussions about the role of the emirate last December, when it was considered as a buyer of the railway logistics subsidiary Schenker. Concerns had been raised about Schenker carrying out transport tasks for NATO and the German army. Schenker was recently sold to Danish competitor DSV.
It is also still unclear who, apart from the partners named by Blackrock, will invest in the new AI fund and whether it will even be accessible to private investors in Germany. Typically, such vehicles for long-term investments in real assets or infrastructure are closed-end funds held by institutional investors such as insurers or pension funds.
Source: Stern
