The CEO of BlackRock the world’s biggest asset manager, said on Friday that the company is talking with several governments about how to pay for important investments in artificial intelligence (AI). These investments include increasing the power supply needed for AI according to Reuters.
AI is expected to make the world more productive but it will need a lot of electricity for data centers and making computer chips.
Larry Fink the CEO of BlackRock spoke online at a meeting in Rome with the B7 business group from the Group of Seven (G7) countries. This meeting happened before the G7 finance ministers and central bankers meet in Italy next week.
Fink said, “These AI data centers are going to require more power than anything we could ever have imagined. We at the G7 do not have enough power.”
He also said, “I think this is going to create a real competitive challenge for countries.”
Fink explained that data centers will likely be built in places where power is cheaper. This means that governments might need to provide money in areas where energy costs are high.
Building data centers and factories for AI will need investments of “trillions of dollars,” according to BlackRock. Fink said private investors like insurance companies and pension funds should be involved.
Japan announced on Tuesday that it expects the need for power to grow by 35% to 50% by 2050 because of the increased demand from AI-related data centers and chip manufacturers.
Fink added “We’re in conversations with many governments right now about how can we bring private capital” but the G7 countries can not afford to pay for everything because of budget problems.
“The deficits we are seeing in the G7 are becoming a burden for my children, your children, our grandchildren,” Fink said.
