BlackRock CEO Larry Fink has revealed that the asset management giant is in discussions with multiple governments to address the substantial energy requirements needed to support the expansion of artificial intelligence (AI).
Speaking remotely at the B7 business group meeting in Rome, Fink stressed the critical need for enhanced power supply to sustain the growth of AI technologies, which rely heavily on data centres and semiconductor plants.
Fink said that these AI data centres are projected to consume unprecedented levels of electricity, far beyond the current capacity of G7 countries. The CEO latched on the competitive challenge this poses, noting that regions with cheaper power costs may attract more of these high-energy facilities. To mitigate this, Fink suggested that state subsidies might be necessary in areas with higher energy expenses to ensure they remain competitive.
The investments required to develop and power these AI-supporting infrastructures are immense, with BlackRock estimating the cost in the trillions of dollars.
Fink stressed that the involvement of private investors, such as pension funds and insurers, is crucial. This approach is necessary to alleviate the financial burden on G7 governments, which are already grappling with significant deficits. He warned that attempting to fund these projects solely through public means could lead to a fiscal crisis, placing a heavy burden on future generations.
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