Asset management colossus BlackRock (BLK) is not resting on its laurels in its bid to strengthen its position in the AI race. The New York-based asset manager is in advanced talks to take a 50% stake in the digital and energy unit of Spanish construction company Actividades de Construcción y Servicios (ACS) (ACS), Expansion reported.
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According to the business newspaper, the goal of the partnership is to develop data centers. The arrangement is being spearheaded by BlackRock’s Global Infrastructure Partners (GIP).
Data Centers Take Center Stage
BlackRock’s latest effort comes several weeks after it led a consortium of investors, which includes U.S. tech majors Nvidia (NVDA) and Microsoft (MSFT), to acquire Texas-based Aligned Data Centers in a deal valued at $40 billion.
Meanwhile, GIP, which oversees over $180 billion in assets across the world, plans to fund the new stake with about $6 billion in equity capital and $21 billion in debt. ACS, headquartered in Madrid, is active in the construction of highways, railways, maritime facilities, and ports, among other infrastructure projects.
The Spanish firm has also been positioning itself for the AI infrastructure boom. The company constructs and operates data centers through its subsidiaries and partnerships.
ACS is aiming to grow its valuation to between $3.5 billion and $6 billion by 2030, and the arrangement with GIP is expected to help shoot its valuation to the upper range of its target.
BlackRock Strengthens Position in AI Infrastructure Race
For BlackRock’s GIP, which is part of a new consortium of AI-focused investors called Artificial Intelligence Infrastructure Partnership, the deal represents its latest effort to capitalize on the AI hype to expand its portfolio in the AI industry. Already, GIP has its eyes on acquiring American utility giant AES Corp. (AES) in a $38 billion deal.
As AES produces and supplies electricity, GIP stands to gain from its ability to supply power to meet the elevated energy demand of Big Tech companies, which remain relentless in their aggressive capital spending on AI data center infrastructure.
Spending by AI is expected to reach almost $400 billion this year, as Big Tech ignores warnings from some of a possible AI bubble burst and a subsequent stock market crash.
Is BLK a Good Stock to Buy?
Turning to Wall Street, BlackRock’s shares currently enjoy a Strong Buy consensus recommendation, according to TipRanks. This is based on 11 Buys and one Hold issued by analysts over the past three months.
Moreover, at $1,355.91, the average BLK price target implies nearly 24% growth possibility from the stock’s current trading level.
