BlackRock's $40B Bet: Securing the Backbone of AI's Future

BlackRock Inc.'s Global Infrastructure Partners (GIP) is nearing a $40 billion agreement to acquire Aligned Data Centers, a major player in AI infrastructure, according to multiple sources. The deal, expected to be finalized within days, would rank among the year's largest transactions and potentially mark the biggest data center acquisition in historyBloomberg, ^[1]. Aligned, backed by Macquarie Asset Management, operates 78 data centers across 50 campuses in the U.S. and South America, offering over 5 gigawatts of capacity. The company has already secured $12 billion in equity and debt financing this year, including from Macquarie and Mubadala Investment Co. Yahoo Finance, ^[2].

The transaction reflects a broader rush to secure digital infrastructure amid surging demand for AI computing power. Aligned's clients include hyperscale providers and AI firms, positioning it at the forefront of a sector expected to require at least $1 trillion in global investment by 2030, per BloombergNEFBloombergNEF, ^[3]. The deal also aligns with GIP's strategy to expand its data center portfolio, following its 2021 acquisition of CyrusOne for $15 billion. BlackRock's purchase of GIP in 2023 for $12.5 billion underscored its pivot toward infrastructure tied to AI growthReuters, ^[4].

MGX, an AI-focused investment arm of Mubadala, is set to play a dual role: it currently holds a minority stake in Aligned and is expected to make an additional investment as part of the GIP-led buyoutBloomberg, ^[5]. Mubadala's involvement highlights the sovereign wealth fund's deepening exposure to AI infrastructure, complementing its existing partnerships with BlackRock. Meanwhile, GIP is also evaluating a potential $38 billion takeover of AES Corp., a power utility, to address escalating electricity needs for AI facilitiesPitchBook, ^[6].

The acquisition has drawn attention for its scale and timing. With AI services yet to achieve mass commercial adoption, some analysts caution that valuations may outpace revenue generation. GIC Pte's CIO Bryan Yeo warned of a potential bubble if AI's transformative potential fails to materializeBloomberg, ^[7]. However, the urgency to secure data center capacity persists. Governments, including the U.S., are streamlining regulatory processes to accelerate construction, while private investors continue to pour capital into the sector. Recent deals include Oracle's $18 billion bond issuance for OpenAI infrastructure and Meta's $29 billion financing for a Louisiana data centerBloomberg, ^[8].

For GIP, the Aligned deal reinforces its position in a competitive market. Digital infrastructure has become a top target for global investors, driven by its dual appeal of stable returns and growth potential. The transaction's success hinges on finalizing terms, but its scale signals a strategic bet on AI's long-term trajectory. BlackRock's shares have risen 13% this year, reflecting investor confidence in its infrastructure-focused strategyYahoo Finance, ^[9].