BlackRock and Google Launch $5B TPU Infrastructure Joint Venture

BlackRock and Google announced on May 18 the formation of a joint venture to create a new US-headquartered company providing data center capacity, operations, networking, and Google Cloud tensor processing units (TPUs) on a "compute as a service" basis. According to the partnership agreement, BlackRock will contribute $5 billion in equity capital from its managed funds as the initial investment.

Joint Venture Structure and Service Model

The new company will operate as a compute-as-a-service platform, delivering efficient data center capacity alongside Google Cloud's TPU technology. BlackRock's equity contribution represents the financial foundation for the venture's launch and scaling operations.

Infrastructure Rollout Timeline

The joint venture is projected to bring its first 500 megawatts (MW) of data center capacity online by 2027. The companies have outlined plans for significant horizontal expansion beyond this initial phase.

Technology and Support

Google will supply cutting-edge hardware including TPUs, accompanying software, and related technical services to support the new company's operations. This ensures the platform will leverage Google Cloud's infrastructure capabilities and AI accelerator technology.