ROME, May 17 (Reuters) - BlackRock ( BLK ) is in talks

with various governments over ways to fund critical investments

to support artificial intelligence (AI), including increasing

the power supply, the CEO of the world's largest asset manager

said on Friday.

AI is seen as a major boost to global productivity, but it

requires data centres and semiconductor plants that require huge

amounts of electricity.

BlackRock ( BLK ) CEO Larry Fink spoke remotely at a meeting in Rome

of the B7 business groups of the Group of Seven (G7) states. The

conference preceded next week's meeting in Italy of finance

ministers and central bankers from the G7 more advanced

economies.

"These AI data centres are going to require more power than

anything we could ever have imagined. We at the G7 do not have

enough power," Fink said.

"I think this is going to create a real competitive

challenge for countries."

Data centres are likely to be built where power supply is

cheaper, raising the need for state subsidies in areas where

energy costs are not competitive, Fink said.

Investments to build the data centres and chip factories

backing AI technologies and power them, which BlackRock ( BLK )

estimates "in the trillions of dollars", require the

participation of private investors and could be a great

opportunity for pension funds and insurers, Fink said.

Japan on Tuesday said it envisages the need for electricity

output to rise 35% to 50% by 2050 due to growing demand from

semiconductor plants and data centres backing AI.

"We're in conversations with many governments right now

about how can we bring private capital," Fink said, adding G7

states could not shoulder the cost given the risk of a "fiscal

crisis".

"The deficits we're seeing in the G7 are becoming a burden

for my children, your children, our grandchildren."