Brookfield Corporation (BN 3.84%) might not be the most obvious AI infrastructure play at first glance. The global investment firm is more of an old-school company. It's an owner-operator of real assets, including real estate and hydroelectric power plants.
However, Brookfield believes AI could be the most impactful technology in human history. To reach its immense potential, the world will need to invest an estimated $7 trillion of capital over the next decade in building out the physical infrastructure to support its adoption. Brookfield aspires to be a leader in capitalizing on this once-in-a-generation opportunity to invest in developing AI infrastructure.
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Brookfield's bold bets on AI infrastructure
In November, Brookfield, through its asset management arm, Brookfield Asset Management, launched its inaugural Brookfield AI Infrastructure Fund, aiming to raise $10 billion in capital from investors. Brookfield Corporation is anchoring the fund along with Nvidia and the Kuwait Investment Authority. This fund, together with additional capital from co-investors and other financing, will enable it to acquire up to $100 billion of AI infrastructure assets in the future. Initial investments include funding up to $5 billion of advanced fuel cells by Bloom Energy to provide power solutions to AI data centers and launching Radiant, a cloud services company that will build AI factories (specialized AI data centers).
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Key Data Points
The fund is just one of many ways Brookfield is investing in AI infrastructure. It also owns interests in renewable power producer Brookfield Renewable and infrastructure operator Brookfield Infrastructure. Brookfield Renewable is developing renewable energy for AI leaders like Microsoft. It also owns a stake in Westinghouse Electric, which will build at least $80 billion of new nuclear reactors for the U.S. government to support AI power demand. Meanwhile, Brookfield Infrastructure is helping fund two advanced semiconductor fabrication facilities for Intel and building multiple data centers worldwide.
These catalysts drive Brookfield's view that it can grow its earnings per share at a 25% compound annual rate over the next five years. As a result, it could double your money by the end of the decade.
