A robot at the Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi. AI spending is booming globally. Khushnum Bhandari / The National
A robot at the Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi. AI spending is booming globally. Khushnum Bhandari / The National
A robot at the Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi. AI spending is booming globally. Khushnum Bhandari / The National
A robot at the Mohamed bin Zayed University of Artificial Intelligence in Abu Dhabi. AI spending is booming globally. Khushnum Bhandari / The National

Abu Dhabi's MGX teams up with BlackRock and Microsoft to raise up to $100bn for AI infrastructure


Alkesh Sharma
  • English
  • Arabic

Abu Dhabi-based technology company MGX, BlackRock, Microsoft and Global Infrastructure Partners have launched an artificial intelligence infrastructure investment partnership that aims to mobilise up to $100 billion to enhance the future of AI.

Initially, the Global AI Infrastructure Investment Partnership plans to secure $30 billion in private equity from investors, asset owners, and companies, which will grow to $100 billion in total investment with the inclusion of debt financing. The partnership will create an open architecture ecosystem, offering access to a wide range of partners and companies on a non-exclusive basis.

The partnership intends to develop new data centres as well as increase the capabilities of existing centres in the US and partner countries, the entities said on Wednesday.

It will also address the growing demand for computing power and support decarbonisation efforts for the critical infrastructure needed for AI while developing energy solutions to generate new power sources for data centres.

The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance
Brad Smith,
president of Microsoft

“We will enable faster innovation, technological breakthroughs and transformational productivity gains across the global economy,” said Sheikh Tahnoun bin Zayed, Deputy Ruler of Abu Dhabi, National Security Adviser and chairman of MGX.

“The investments we make today will secure a more sustainable, prosperous and equitable future for all mankind.”

Established in March, MGX aims to expedite the development of AI and other advanced technology as the UAE seeks to enhance its future economy. It focuses on three core areas – AI infrastructure (data centres and connectivity), semiconductors and core technology and applications such as AI models, software, data, life sciences and robotics.

Partnership to boost Abu Dhabi

Ahmed Al Idrissi, chief executive of MGX, said the partnership will expedite the adoption of AI across industries, with MGX playing a crucial role in this transformation.

The initiative will establish Abu Dhabi as one of the leading hubs for AI infrastructure globally, he said.

Ahmed Al Idrissi (from left to right), chief executive of MGX, Brad Smith, president of Microsoft, Larry Fink, chief executive of BlackRock, and Adebayo Ogunlesi, chairperson of Global Infrastructure Partners, during the signing of deal. Photo: MGX
Ahmed Al Idrissi (from left to right), chief executive of MGX, Brad Smith, president of Microsoft, Larry Fink, chief executive of BlackRock, and Adebayo Ogunlesi, chairperson of Global Infrastructure Partners, during the signing of deal. Photo: MGX

“Installed data centre capacity today exceeds 70 gigawatts. Over the next 10 to 15 years, this number is expected to reach 300 gigawatts. Currently, 1 gigawatt costs about $30 billion to $35 billion, making this level of spending unprecedented in both scope and scale,” Mr Al Idrissi told The National from Washington DC, where he was attending the deal signing ceremony.

“Even hyper-scalers today are spending around $200 billion to $250 billion annually on infrastructure, but they can no longer sustain this level of expenditure moving into the next decade. Therefore, we have come together to create an investment vehicle that can help bear some of this burden and offer infrastructure delivery as a service to various players across the market.”

A hyper-scaler, for example, Microsoft and Oracle, is a cloud provider that operates a large-scale data centre network to offer computing, storage and other technology services.

“Our mandate is to invest in infrastructure, and there is no better partner for that than hyper-scalers, which is why we teamed up with Microsoft. BlackRock, as one of the largest global capital providers, is also a key partner,” Mr Al Idrissi said.

“While our objective is to generate strong financial returns, we are also committed to building Abu Dhabi into one of the world’s leading hubs for infrastructure and AI. This partnership allows us to bring the best global expertise to further develop Abu Dhabi’s AI ecosystem.”

Global AI industry is growing rapidly. Business spending to adopt AI is expected to have a cumulative global economic impact of $19.9 trillion by 2030 and contribute 3.5 per cent to the global economy by that year, according to an International Data Corporation report. In its latest survey, IDC found about 98 per cent of global business leaders consider AI to be a priority for their organisations.

Mobilising private capital to build AI infrastructure will unlock a “multi-trillion-dollar” long-term investment opportunity, said Larry Fink, chairman and chief executive of BlackRock.

“Data centres are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation.”

Car makers are increasingly deploying AI sensors to make vehicles more smarter and interactive. Getty
Car makers are increasingly deploying AI sensors to make vehicles more smarter and interactive. Getty

Microsoft, based in Redmond, Washington, announced it would be opening a branch of its AI for Good Lab in Abu Dhabi, its first such centre in the Middle East.

Data centres are considered the backbone of AI development because they provide the computing power and storage needed to process vast amounts of data, run complex algorithms, and train AI models. However, powering these centres is very energy-intensive, and in the absence of sustainable energy sources, the environmental effects could be significant.

Data centres consumed 7.4 gigawatts of power last year, up 55 per cent from the 4.9 gigawatts in 2022, according to Chicago-based commercial real estate services firm Cushman & Wakefield.

Data centres and data transmission networks are responsible for about 1 per cent of energy-related greenhouse gas emissions, according to the International Energy Agency.

The investment required for AI infrastructure and the energy to support it exceeds the capacity of any single company or government to fund on their own, said Brad Smith, president of Microsoft.

“This financial partnership will not only help advance technology, but enhance national competitiveness, security, and economic prosperity.”

GAIIP, with support from chip maker Nvidia, will work to enhance both AI supply chains and energy sourcing.

“There is a clear need to mobilise significant amounts of private capital to fund investments in essential infrastructure. One manifestation of this is the capital required to support the development of AI,” said Bayo Ogunlesi, chairman and chief executive of Global Infrastructure Partners.

“We are highly confident that the combined capabilities of our partnership will help accelerate the pace of investments in AI-related infrastructure.”

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Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

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Price: From Dh117,059

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Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

The Baghdad Clock

Shahad Al Rawi, Oneworld

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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Specs

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Range: 400km

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Torque: 175Nm

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Company Profile 

Founder: Omar Onsi

Launched: 2018

Employees: 35

Financing stage: Seed round ($12 million)

Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

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box

COMPANY PROFILE

Company name: Letstango.com

Started: June 2013

Founder: Alex Tchablakian

Based: Dubai

Industry: e-commerce

Initial investment: Dh10 million

Investors: Self-funded

Total customers: 300,000 unique customers every month

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Diriyah%20project%20at%20a%20glance
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Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Pari

Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment

Director: Prosit Roy

Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani

Three stars

Empire of Enchantment: The Story of Indian Magic

John Zubrzycki, Hurst Publishers

Updated: September 18, 2024, 4:29 PM`