The Dawn of a New AI Super-Infrastructure
In a landmark coalition that signals the next phase of global AI infrastructure development, Temasek Holdings, Microsoft, and BlackRock announced a joint $30 billion initiative to develop next-generation data center campuses across Asia, the Middle East, and Africa. This strategic collaboration—known internally as Project MGX—aims to accelerate the availability of AI infrastructure in regions historically underserved by hyperscale compute.
At the core of this venture is a blend of state-backed capital (Temasek), global AI platform leadership (Microsoft), and financial muscle (BlackRock) to create a new infrastructure layer capable of supporting the next generation of artificial intelligence, machine learning, and quantum workloads.
This blog dives into what makes this partnership unique, where the capital is going, and why the AI infrastructure map is about to be redrawn for the next decade.
Meet the Players — A Triple Threat of Influence and Reach
Temasek Holdings (Singapore)
- One of the largest sovereign wealth funds globally
- $300B+ portfolio
- Strong regional insight into Southeast Asia, Africa, and emerging markets
Microsoft
- Global cloud leader with Azure regions in over 60 countries
- AI powerhouse via OpenAI and in-house chips (Azure Maia, Cobalt)
- Increasing commitment to sovereign cloud and AI localization
BlackRock
- $10 trillion under management
- Infrastructure investment powerhouse
- Provides long-term financing and risk structuring
Together, these three entities can fund, build, operate, and scale AI infrastructure—something few single companies can do on their own.
Why This Deal Matters — The Infrastructure Gap in the Global South
AI’s rise has been overwhelmingly concentrated in North America, Europe, and China. But this concentration has led to:
- Data sovereignty concerns in regions without local compute
- Latency issues in AI workloads for users outside core markets
- Limited access to training infrastructure for startups and governments
The MGX alliance aims to resolve this imbalance by building 14 hyperscale campuses across key growth markets including:
- Jakarta (Indonesia)
- Nairobi (Kenya)
- Riyadh (Saudi Arabia)
- Mumbai (India)
- Ho Chi Minh City (Vietnam)
Each region will get 200–500 MW facilities optimized for AI, co-located with renewable energy, and built using sovereign-compliant cloud standards.
The MGX Blueprint — Data Centers Engineered for AI
Unlike traditional hyperscale data centers, MGX facilities will be engineered from the ground up for generative AI, multi-modal LLMs, robotics, and quantum simulation. Key features include:
1. Liquid-Cooled Infrastructure
- Every rack supports 40kW+ densities
- Direct-to-chip cooling with AI-optimized flow regulation
2. Modular Renewable Integration
- Co-located solar farms and geothermal installations
- Battery-based backup, no diesel
3. Azure-Ready AI Fabric
- Deep integration with Microsoft’s Azure Stack
- Custom-built clusters for GPT, DALL-E, Copilot, and Hugging Face integrations
4. On-Site Semiconductor Capabilities
- Micro-foundries in Indonesia and Saudi Arabia for custom chip packaging
- Joint IP development for LLM inference accelerators
Why Now? Timing, Geopolitics, and the AI Gold Rush
The world is in the midst of a global AI infrastructure shortage. According to industry estimates:
- The demand for AI servers will grow 7x between 2023 and 2028
- Over $1.6 trillion in investment is needed to meet global compute needs
- Sovereign AI clouds will be mandated in over 40 countries by 2026
Temasek, Microsoft, and BlackRock are stepping into a vacuum.
Strategic Advantages:
- Geopolitical alignment with ASEAN, Gulf Cooperation Council, and African Union
- Supply chain control through vertical integration
- Edge advantage for smart cities, fintech, telecom, and defense sectors
The Financials — How $30 Billion Is Being Allocated
The deal breaks down into three distinct investment tranches:
- Core Infrastructure ($18B)
- Construction of 14 campuses
- Real estate acquisition and grid interconnection
- R&D + Talent ($6B)
- Training institutes in partnership with universities
- Open-source model research hubs
- AI Capital Fund ($6B)
- Startup accelerator programs in 10 regions
- Dedicated GPU leasing platform (Project NeuronGrid)
This is not just about buildings—MGX is laying the foundation for an entire AI economy in emerging markets.
Regional Case Study – Jakarta’s Rise as Southeast Asia’s Compute Hub
Jakarta is set to receive the first MGX data center, with 480 MW planned by 2026. Reasons for this choice:
- Explosive digital growth in Indonesia (350M+ internet users)
- Strong government alignment with sovereign AI strategies
- Proximity to subsea cables and green energy zones
The campus will host:
- A regional LLM tuned for Bahasa and regional dialects
- Free AI credits for startups and research institutions
- 12,000 construction jobs and 2,000 permanent roles
This model will be replicated across MGX zones.
Strategic Implications for AI and Cloud
1. Democratizing AI
MGX’s sovereign zones enable universities, startups, and governments in the Global South to train and deploy models locally.
2. Redefining Infrastructure Power
This alliance displaces the "West-only" paradigm of AI dominance and signals a multipolar future for cloud infrastructure.
3. Boosting Local Tech Economies
MGX zones are designed not just to host data—but to catalyze entire innovation ecosystems, from education to export.
4. Creating New Cloud Sovereignties
By hosting AI within national borders, countries gain:
- Regulatory control
- Cultural model alignment
- Data privacy assurance
MGX Will Reshape AI Access in the 2020s
Temasek, Microsoft, and BlackRock’s $30 billion MGX alliance is not just a real estate or tech play. It is a declaration that AI equity matters—that access to compute is as vital as access to internet was in the 1990s.
With scalable infrastructure, sovereign compliance, and financial backing, MGX may well become the blueprint for how to build ethical, global AI platforms from the ground up.
As 2025 unfolds, one thing is clear: the future of artificial intelligence is being written not just in Silicon Valley, but also in Jakarta, Nairobi, and Riyadh.