BlackRock and Microsoft plan to launch a more than $30 billion fund to invest in artificial intelligence infrastructure to build data centers and energy projects, the companies said Tuesday.

AI models, especially those used for deep learning and large-scale data processing, require substantial computational power, leading to higher energy consumption.

The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching power, leading to a surge in the demand for these specialized data centers.

The investment vehicle, known as Global AI Infrastructure Investment Partnership, aims to help enhance AI supply chains and energy sourcing, BlackRock and Microsoft said.

MGX, the Abu Dhabi-backed investment company, will be a general partner in the fund, while AI chip firm Nvidia will provide expertise.

The partnership will mobilize up to $100 billion in total investment potential when including debt financing, the companies said.

The investments will be chiefly in the United States and the remainder in its partner countries, according to the companies.

The Financial Times had first reported on the development.