Blackstone, the world’s largest alternative asset manager, will ​invest an initial $5 billion in equity to help bring 500 megawatts of ​data centre capacity online in 2027, with further expansion planned over ⁠time.

The US-based venture will provide data centre capacity along with Google’s custom AI ​chips, known as Tensor Processing Units, or TPUs, through a compute-as-a-service model.

The total ​investment value could reach $25 billion, including leverage, according to Bloomberg News.

Both companies did not immediately responded to a request for comments on the Bloomberg report.

Blackstone has appointed Benjamin Sloss, a long-time ​Google executive, as CEO of the new venture.

Thomas Kurian, chief executive of Google ​Cloud, said the venture would help address growing demand for TPUs by offering organisations additional ways ‌to ⁠access computing capacity.

Analysts and investors have said Google is taking a sizeable share of new AI-driven computing demand, supported by its business tools and custom chips that have attracted customers such as Anthropic.

“This isn’t the biggest headline number we’ve seen. ​But it’s a high-quality ​bet on sustainable ⁠growth in AI infrastructure,” said Brittain Ladd, AI and supply chain consultant at Florida-based Chang Robotics.

Blackstone ramps up AI investments

Blackstone ​has stepped up investments in AI-related infrastructure, including data centres, power ​generation and ⁠transmission assets.

Those investments are valuable as the AI boom pushes operators to secure long-term energy supply deals.

The new partnership reflects rising demand for AI infrastructure and the need ⁠for ​large-scale capital deployment, Blackstone President Jon Grey said.

Spending ​by Big Tech firms on AI infrastructure, including data centres, is expected to top $700 billion in 2026.