The data center frenzy in the United States, the Middle East has made a lot of money

Founded just a year ago, the UAE fund MGX has rapidly risen in the global capital markets and has quietly become one of the world's major investors in data centers. By leading record-breaking acquisitions and strategically investing in key assets, this capital force from the Middle East is deeply involved in and supporting the massive infrastructure construction of artificial intelligence in the United States.

According to media reports, MGX will become the single largest shareholder in the $40 billion acquisition of Aligned Data Centers. If this deal is successfully completed in the first half of next year, it will become the largest data center transaction in history. In addition to direct equity holdings, MGX has further solidified its position as the largest financial backer of major data center operators in the U.S. through investments in other partnerships.

Meanwhile, MGX has engaged with Vantage Data Centers, closely related to OpenAI's core projects, not only holding shares but also having executives on the board. This series of actions indicates that against the backdrop of surging demand for computing power and electricity in Silicon Valley, the UAE is attempting to transform from a purely financial investor into a core participant in global AI development through its strong capital strength.

After MGX Chairman Sheikh Tahnoun bin Zayed Al Nahyan met with U.S. President-elect Trump in March, the UAE pledged to invest $1.4 trillion in the U.S. over the next decade. Although Wall Street giants like BlackRock frequently appear in the transactions, the details of the funding structure show that Middle Eastern capital is providing crucial liquidity support for this expensive AI infrastructure race.

Leading Record-Breaking Acquisitions

In the transaction structure of Aligned Data Centers, MGX has demonstrated its role as a major investor. According to insiders, the current owner of Aligned, Macquarie Asset Management, had previously considered an IPO for the company but ultimately reached a sale agreement in October. The buyer consortium includes BlackRock, MGX, and an investment group named AI Infrastructure Partnership (AIP).

This transaction gives Aligned an enterprise valuation of about $40 billion (including debt), with the buyers set to pay approximately $21 billion in equity consideration. Sources familiar with the transaction details indicate that MGX will directly purchase 35% of Aligned's equity, while BlackRock will acquire 20%. AIP will acquire the remaining 45% equity.

It is noteworthy that MGX is also the largest investor in AIP, whose other investors include NVIDIA, Microsoft, and BlackRock. Based on this shareholding structure, MGX will become the largest investor in Aligned, with BlackRock in second place. The transaction has not yet closed, and specific details may still change.

Deeply Integrated into the AI Supply Chain

In addition to the Aligned transaction, MGX's layout in Vantage Data Centers further reveals its strategic position in the AI supply chain. MGX acquired a minority stake in Vantage last year, and Vantage is currently building two data center campuses for Oracle, with total borrowings of $38 billion Oracle will utilize these facilities as part of OpenAI's "Stargate" project to provide computing resources.

This was followed by deep management involvement. Ali Osman, the head of AI investments at MGX, joined the Vantage board this year. This move allows MGX to observe and participate in the largest data center transaction of the year from the front lines.

The UAE has a long history of supporting tech companies, with its sovereign wealth fund Mubadala having a scale of $330 billion. The establishment of MGX and its subsequent portfolio—including stakes in the UAE-based Khazna Data Centers and agreements to build data centers in France and Italy—has sent a clear signal through its breadth and scale: the country intends to become a dominant player in the powerful AI development field.

Capital Alliances and Future Increments

To meet the potential funding needs of tens of trillions of dollars for AI data center construction in the coming years, MGX has established a close blood transfusion pipeline with Wall Street. BlackRock stated that its partnership with MGX could invest up to $30 billion in data centers and power resources, and when including debt financing, the total could increase to $70 billion. This means that after completing the Aligned acquisition, the two parties may reach more deals.

Bank estimates show that the funding demand for AI data center construction is staggering, and the alliance between MGX and BlackRock is clearly aimed at filling this huge funding gap. Although both BlackRock and MGX declined to comment on the specifics of the Aligned deal, the market generally believes that this capital cooperation model will become the mainstream for future AI infrastructure financing.

Potential Regulatory Scrutiny

Despite ample funding, MGX's large-scale investments in the U.S. are not without obstacles. This investment may trigger a review by the U.S. Committee on Foreign Investment, which typically oversees acquisitions that involve transferring control of U.S. critical infrastructure companies to foreign investors.

It is currently unclear whether MGX's total stake in Aligned would constitute "control" under CFIUS definitions. According to a knowledgeable source, MGX and BlackRock jointly share control over AIP, indicating that MGX has a say in AIP's voting decisions. The definition of this control will be a key variable in determining whether future transactions can proceed smoothly