The UAE-based fund MGX, established just a year ago, has rapidly emerged as a major global financier for data centers. Through record-breaking acquisitions and strategic investments in critical assets, this Middle Eastern capital is deeply involved in supporting the massive AI infrastructure buildout in the US.
Reports indicate that MGX will become the single largest shareholder in the $40 billion acquisition of Aligned Data Centers. If completed in the first half of next year, this would mark the largest data center transaction in history. Beyond direct equity stakes, MGX has further solidified its position as the primary financier for major US data center operators through additional investment partnerships.
MGX has also invested in Vantage Data Centers, which is closely tied to OpenAI's core projects, securing both equity and board representation. These moves demonstrate the UAE's ambition to transition from passive financial investor to active participant in global AI development, leveraging its substantial capital amid Silicon Valley's surging demand for computing power and electricity.
Following a March meeting between MGX Chairman Sheikh Tahnoun bin Zayed Al Nahyan and US President-elect Trump, the UAE pledged $1.4 trillion in US investments over the next decade. While Wall Street giants like BlackRock frequently appear in these deals, funding structures reveal Middle Eastern capital is providing crucial liquidity for this expensive AI infrastructure race.
In the Aligned Data Centers deal, MGX plays the lead financier role. The seller, Macquarie Asset Management, had previously considered an IPO before agreeing to the October sale. The buyer consortium includes BlackRock, MGX, and investment group AI Infrastructure Partnership (AIP). The transaction values Aligned at approximately $40 billion enterprise value (including debt), with $21 billion in equity consideration. MGX will directly acquire 35% of Aligned, BlackRock 20%, and AIP the remaining 45%.
Notably, MGX is also AIP's largest investor, with other partners including Nvidia, Microsoft, and BlackRock. This structure makes MGX Aligned's biggest investor, followed by BlackRock. The deal remains pending and details may change.
Beyond Aligned, MGX's investment in Vantage Data Centers reveals its strategic positioning in the AI supply chain. MGX acquired a minority stake in Vantage last year, which is currently building two data center campuses for Oracle with $38 billion in financing. These facilities will support OpenAI's "Stargate" project. MGX has deepened its involvement by placing its AI investment head Ali Osman on Vantage's board this year, gaining frontline access to the year's largest data center deals.
The UAE has long supported tech companies through its $330 billion sovereign wealth fund Mubadala. MGX's portfolio—including stakes in local player Khazna Data Centers and European construction agreements—signals the nation's ambition to dominate AI development through scale and breadth.
To meet the trillions required for future AI data center construction, MGX has established strong financial pipelines with Wall Street. BlackRock estimates its partnership with MGX could invest up to $30 billion in data centers and power resources, potentially reaching $70 billion with debt financing. This suggests more deals may follow the Aligned acquisition.
Bank estimates show staggering funding requirements for AI data centers, which the MGX-BlackRock alliance aims to address. While neither party commented on Aligned deal specifics, this capital partnership model is expected to become standard for future AI infrastructure financing.
Despite abundant capital, MGX's US investments face potential hurdles. The deals may trigger CFIUS review, which scrutinizes foreign acquisitions of critical US infrastructure. It remains unclear whether MGX's combined Aligned stake constitutes "control" under CFIUS definitions. Sources indicate MGX shares control of AIP with BlackRock, giving it voting influence—a key variable for deal approval.
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