$500 Billion Needed for AI Infrastructure, 70GW Power Demand

Larry Fink, the chairman of BlackRock, stated that the United States will require over 70 gigawatts (GW) of power capacity and approximately $500 billion for its artificial intelligence (AI) operations. The AI competition is expanding from model development to the enhancement of data centers and power grids. Chairman Fink suggested that the cost of power and infrastructure development is between $5 billion and $6 billion per GW, explaining that securing 70GW would immediately require about $500 billion. This amount represents the necessary funding scale rather than confirmed investment contracts and includes infrastructure for AI services such as data centers, semiconductors, and power grids. Even if the construction of data centers progresses quickly, delays in securing transformers and transmission facilities could postpone operational timelines. According to the International Energy Agency (IEA), data centers are expected to account for about 1.5% of global electricity consumption in 2024, with consumption projected to more than double by 2030. BlackRock, Global Infrastructure Partners, and Microsoft announced plans to launch an AI infrastructure partnership in September 2024 to raise up to $30 billion in equity capital and create an investment capacity of up to $100 billion. This partnership will be structured to include institutional investors and the private credit market, aiming to secure large-scale funding necessary for AI infrastructure construction.

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