Nvidia, Microsoft, BlackRock and Elon Musk’s xAI are reportedly collaborating on what is being described as the largest global data centre infrastructure initiative to date. According to media reports, the project, codenamed “Stargate”, is expected to cost around USD 100 billion and aims to support the growing computational demands of artificial intelligence.
The initiative is being led by Elon Musk’s xAI, with the first phase of the project planned for Memphis, Tennessee. The proposed facility will be a supercomputer designed to support xAI’s Grok chatbot and other large-scale AI models. Nvidia is expected to supply the GPUs, while Microsoft will provide cloud infrastructure and software support. BlackRock is reportedly involved in financing the project.
The Stargate project is part of a broader plan to build a network of data centres capable of supporting advanced AI workloads. The Memphis facility is expected to be operational by 2026, with construction potentially beginning later this year. The report notes that the facility will require tens of thousands of Nvidia’s H100 GPUs, which are currently in high demand across the AI industry.
The collaboration reflects the increasing convergence of AI development, cloud computing, and financial capital. Microsoft’s involvement aligns with its broader AI strategy, which includes partnerships with OpenAI and investments in AI infrastructure. Nvidia’s role as a hardware supplier reinforces its position as a key enabler of AI compute capacity, while BlackRock’s participation signals growing institutional interest in AI infrastructure as an investment class.
The report also highlights that the scale of the project far exceeds typical data centre investments. For comparison, Microsoft’s total capital expenditure in the last fiscal year was approximately USD 30 billion. The Stargate project alone is expected to cost more than three times that amount, underscoring the scale of resources being committed to AI infrastructure.
While the companies involved have not publicly confirmed all details, the report suggests that the project is advancing through planning and early-stage coordination. If completed as envisioned, the Stargate initiative could significantly reshape the global data centre landscape and set a new benchmark for AI infrastructure deployment. |
