02:10 PM EDT, 07/15/2024 (MT Newswires) -- BlackRock ( BLK ) on Monday touted the potential to monetize the power production capacity of assets owned by its infrastructure funds amid growing artificial intelligence adoption.

Data centers associated with AI will need "enormous amounts of energy to power them," Chief Executive Laurence Fink said on an earnings conference call, according to a Capital IQ transcript.

"With the AI-fueled need to build data centers, we see great potential to monetize the 4.3 gigawatts of power production capacity of generational assets currently owned by BlackRock's ( BLK ) infrastructure funds," Fink told analysts. The asset manager's planned acquisition of Global Infrastructure Partners, or GIP, is expected to add numerous global data centers assets in its portfolio, Fink added.

In January, BlackRock ( BLK ) agreed to acquire GIP for a total consideration of $3 billion in cash and roughly 12 million common shares. Last month, BlackRock ( BLK ) struck a deal to acquire private markets data provider Preqin for 2.55 billion British pounds ($3.31 billion) in cash.

"By bringing together investments, tech data across public and private markets, we have the opportunity to drive better portfolio outcomes for investors and open up a diversified higher multiple earnings streams for our shareholders' view," Fink told analysts.

BlackRock's ( BLK ) adjusted earnings rose to $10.36 a share for the quarter through June 30 from $9.28 a year earlier, while revenue increased 8% to $4.81 billion. Analysts polled by Capital IQ were looking for $9.96 and $4.78 billion, respectively. Assets under management jumped 13% to $10.646 trillion.

"BlackRock's ( BLK ) core business growth is the strongest we've seen in nearly (three) years with a significant upward shift ever since our last earnings call in April," Fink said on the call. The company has a "strong conviction" it is on pace to hit its 5% organic base fee growth outlook, he added.

The company's technology services annual contract value, or ACV, rose 10% year over year in the quarter amid "sustained" demand for its Aladdin platform offerings, according to a statement. Over the long term, BlackRock ( BLK ) is committed to low- to mid-teens ACV growth amid its "strong multiproduct pipeline," Chief Financial Officer Martin Small said on the call.

"Our business tends to be seasonally stronger in the back half of the year, and we have line of sight into a broad global opportunity set of new asset management and technology mandates that should fuel premium organic growth," Small told analysts.

The company bought back $500 million of common shares in the second quarter and expects to repurchase at least $375 million of shares per quarter for the rest of the year, in line with its prior outlook, Small said.

"In the second quarter, we saw equity markets power to another record high and more clients starting to rerisk," Small told analysts. "Investors waiting in cash have missed out on significant equity market returns over the last year and more investors are stepping back into risk assets."

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