(Reuters) -Elon Musk's xAI and AI chip giant Nvidia will be part of a group to develop infrastructure for artificial intelligence, BlackRock ( BLK ), Microsoft ( MSFT ) and Abu Dhabi-backed investment company MGX said on Wednesday.

Deep learning and large-scale data processing require significant computational power, which in turn increases energy consumption. To meet these demands, tech companies are deploying thousands of chips in clusters, driving a surge in the need for specialized data centers.

The group will be renamed as AI Infrastructure Partnership from Global AI Infrastructure Investment Partnership, which was announced in September last year.

The partnership will initially generate $30 billion in capital from investors, asset owners and corporations, potentially mobilizing up to $100 billion in total investment, including debt financing, the group said.

(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)