You can't build a data center without ensuring it has reliable power. Without electricity, artificial intelligence simply doesn't work. That's why AI giants including Microsoft and Alphabet's Google are entrusting Brookfield Renewable Partners (BEP 0.90%) to help them build out their AI data centers.
Here's what you need to know about this 5.2%-yielding AI data center play.
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What does Brookfield Renewable Partners do?
Brookfield Renewable Partners owns clean energy assets. Its portfolio is globally diversified and includes solar, wind, hydroelectric, battery, and nuclear power. It's a one-stop shop for any company that's trying to use renewable power or zero-carbon power such as nuclear energy. Brookfield Renewable Partners signs long-term power supply contracts, generating reliable cash flows to support its hefty yield.
At the end of the third quarter of 2025, the average contract length was 13 years. Roughly 70% of its contracts were indexed for inflation. And 75% of Brookfield Renewable Partners' revenue was derived from developed countries. This is a stable and reliable business that rewards income-focused investors very well.
The AI opportunity is expanding
The company has deals in place to supply Google with 3 gigawatts of power for data centers. The Microsoft deal is even bigger, encompassing 10.5 gigawatts. These deals are geared toward future developments. Overall, Brookfield Renewable Partners expects to make between $9 billion and $10 billion worth of capital investments over the next five years.
NYSE: BEP
Key Data Points
This spending is expected to drive funds from operations growth of 10% or more a year. That, in turn, will support the long-term goal of increasing the distribution by 5% to 9% a year. So this isn't just a high yield story; it's also a dividend growth story.
The hidden gem is Westinghouse
What's most interesting about Brookfield Renewable Partners right now, however, is its investment in Westinghouse. Nuclear power is going through a renaissance. Roughly 85% of Westinghouse's revenues come from services, but a new $80 billion deal with the U.S. government to build nuclear reactors hints that there could be more to this business than meets the eye, as power-hungry AI data centers push demand for electricity higher.
If you've never heard of Brookfield Renewable Partners, now could be the time to dig into this high-yielder. For investors who prefer to avoid partnerships, there's a corporate version of the business that trades as Brookfield Renewable Corporation (BEPC 1.33%). High demand among institutional investors for the shares, however, leave it with a lower 3.7% yield.
