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It will include access to Google’s Tensor Processing Units, or TPUs.The custom chips are designed to develop and run AI models.reported that the total investment value could reach US$25 billion, including leverage.
Google and Blackstone did not immediately respond to requests for comment on the report.Blackstone has named Benjamin Treynor Sloss, a long-time Google executive, as chief executive of the new venture.TPUs shape the compute strategyGoogle Cloud chief executive Thomas Kurian said the partnership would address demand for TPUs by giving organisations more ways to access computing capacity.The business will operate in the same segment as neocloud providers, including CoreWeave and Nebius Group.These companies sell computing power to AI companies.Many use Nvidia graphics processing units, while the Google-Blackstone venture will run on Google’s TPUs.CoreWeave, one of the neocloud providers in the AI infrastructure market, reported revenue backlog of US$66.8 billion as of December 31, 2025.Alphabet’s latest results showed Google Cloud revenue rose 63% year over year to more than US$20 billion in the first quarter of 2026.
Backlog for the cloud business nearly doubled quarter on quarter to more than US$460 billion.Alphabet also reported US$35.7 billion in capital expenditure for the same quarter.Blackstone builds its data centre positionBlackstone has made several investments in AI-related infrastructure, including data centres, power generation, and transmission assets.Blackstone has also expanded its data centre holdings through acquisitions.
It bought data centre operator QTS in 2021.In 2024, it acquired Australian data centre operator AirTrunk in a transaction with an implied enterprise value of more than A$24 billion.At the time of the acquisition agreement, AirTrunk had more than 800 megawatts of capacity committed to customers across Asia Pacific.Earlier in May, Blackstone held an initial public offering for Blackstone Digital Infrastructure Trust.The vehicle focuses on acquiring already-built and leased data centre properties.
reported that it raised US$1.75 billion in its US IPO and was targeting data centres leased to hyperscale tenants.also reported that Blackstone manages a US$150 billion global portfolio in digital infrastructure.Data centres increase power requirementsData centre operators are seeking long-term power arrangements to support large computing workloads.The International Energy Agency projects global electricity consumption from data centres will double to around 945 terawatt-hours by 2030.The agency said this would represent just under 3% of global electricity consumption in 2030.The IEA also said data centre electricity consumption is expected to grow by around 15% a year from 2024 to 2030.
That rate is more than four times faster than electricity consumption growth from all other sectors.Blackstone President Jon Gray said the partnership reflects demand for AI infrastructure and the need for large-scale capital deployment.Spending by Big Tech firms on AI infrastructure, including data centres, is expected to exceed US$700 billion in 2026.See also: Google and SpaceX discuss orbital AI data centresWant to learn more about Cloud Computing from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.The comprehensive event is part of TechEx and is co-located with other leading technology events, click here for more information.Cloud Computing News is powered by TechForge Media.
Explore other upcoming enterprise technology events and webinars here.About the Author Muhammad ZulhusniJournalist As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry.He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.Related SambaNova and Intel’s heterogeneous x86 AI architecture19th May 2026 Google and SpaceX discuss orbital AI data centres15th May 2026 AWS expands Anthropic partnership with Claude Platform launch12th May 2026 OpenTelemetry becomes the cloud’s common language12th May 2026 SambaNova and Intel’s heterogeneous x86 AI architecture19th May 2026 Google and SpaceX discuss orbital AI data centres15th May 2026 AWS expands Anthropic partnership with Claude Platform launch12th May 2026 OpenTelemetry becomes the cloud’s common language12th May 2026 Join our CommunitySubscribe now to get all our premium content and latest tech news delivered straight to your inbox Click here Popular Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20493 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12619 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6337 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 6164 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20493 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12619 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6337 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 6164 view(s) See all Latest View All Latest AI & Cloud12th May 2026AWS expands Anthropic partnership with Claude Platform launch Sponsored Content12th May 2026OpenTelemetry becomes the cloud’s common language AI & Cloud7th May 2026Microsoft’s clean energy target under pressure from AI data centres AI & Cloud12th May 2026AWS expands Anthropic partnership with Claude Platform launch Sponsored Content12th May 2026OpenTelemetry becomes the cloud’s common language AI & Cloud7th May 2026Microsoft’s clean energy target under pressure from AI data centres SubscribeAll our premium content and latest tech news delivered straight to your inbox Subscribe ExploreAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyReach Our AudienceAdvertisePost a Press ReleaseContact UsAdvertisePost a Press ReleaseContact UsCategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesOther PublicationsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsCloudTech News is part of TechForge SubscribeAll our premium content and latest tech news delivered straight to your inbox
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