Brookfield: A Ledger of AI Infrastructure

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The coming decade demands a prodigious outlay – some seven trillion dollars, by current reckoning – to construct the very foundations upon which Artificial Intelligence shall rest. This is not merely a matter of technological advancement, but a monumental undertaking of infrastructure, a vast expenditure encompassing the fabrication of specialized ‘AI Factories’ – data centers devoted solely to the processing of these new intelligences – the expansion of computational capacity, and the provision of the immense power required to sustain such endeavors. A sum, one might observe, that could alleviate much suffering elsewhere, yet is deemed essential to the pursuit of this digital dominion.

The initial fervor surrounding AI has fixated, predictably, on the silicon chip – the visible engine of this new age. This has created a myopia, a dangerous oversight, blinding investors to the companies quietly constructing the underlying skeleton, the very sinews that will support the weight of this burgeoning intelligence. Among these, one entity – Brookfield Infrastructure (BIPC +2.01%)(BIP +1.22%) – has begun to distinguish itself, a slow, deliberate progress documented over the past year.

The Architect of Connection

Brookfield Infrastructure operates not as a singular entity, but as a sprawling network, a web of utilities, energy pipelines, transportation corridors, and data infrastructure, extending across the globe. This diversification, while often lauded, is more accurately a bulwark against the inherent volatility of any single sector. It generates a consistently growing stream of capital, a slow accumulation of wealth derived from the essential services it provides. In 2025, its Funds From Operations increased by six percent, a figure inflated, of course, by the relentless march of inflation, yet underpinned by genuine volume growth and strategic acquisitions. A modest gain, perhaps, but one built upon tangible assets, not ephemeral promises.

Included within these capital projects was the commissioning of 220 megawatts of new data center capacity. A substantial addition, certainly, yet dwarfed by the projected demand. This expansion yielded a more than fifty percent increase in Funds From Operations generated by its data infrastructure segment, a testament to the insatiable appetite of the digital world. A figure, one might note, that fails to account for the environmental cost of such expansion.

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Brookfield also acquired a South Korean industrial gas business, a supplier to the nation’s leading semiconductor manufacturers. A strategic move, securing a vital link in the supply chain, a tightening of control over a critical resource. It is a pattern repeated across its holdings – a deliberate consolidation of power, a quiet accumulation of influence.

The Promise and the Burden

Brookfield now operates approximately 1.2 gigawatts of data center capacity worldwide, with an additional 1.1 gigawatts contracted and a land bank capable of supporting 1.3 gigawatts more. A considerable footprint, yet a mere fraction of what will be required to satisfy the coming demand. The expansion continues, relentlessly, driven by the inexorable logic of the market.

Beyond the construction of data centers, Brookfield is investing in solutions to provide power, partnering with Bloom Energy to install 55 megawatts of behind-the-meter power at a data center site in the United States, utilizing advanced fuel cell technology. A laudable effort, yet a temporary reprieve. The long-term solution, one suspects, lies not in innovation, but in the continued exploitation of finite resources. They have secured contracts for an additional 230 megawatts, to be deployed by mid-2027. A steady, incremental expansion, masking the underlying fragility of the system.

Their partnership with Intel to construct $30 billion of semiconductor manufacturing capacity in the United States is now beginning to bear fruit. The facilities are ramping up production, adding to the ever-increasing supply of silicon chips. A cycle of production and consumption, driven by the relentless pursuit of technological advancement.

Brookfield’s energy-related operations, its electric utilities and gas infrastructure, are poised to benefit from the surging power demand of AI data centers and chip foundries. A predictable outcome, a consequence of the interconnectedness of the system. Ample opportunities for investment lie ahead, opportunities that will undoubtedly be seized.

A Convergence of Interests

Brookfield Infrastructure views AI infrastructure as a generational investment opportunity, a chance to capitalize on a megatrend. They are leveraging their diversified global platform to invest directly in AI infrastructure – the chips, the data centers – and in the supporting industries – the industrial gases, the power generation. A comprehensive approach, designed to capture value at every stage of the process. They anticipate an acceleration of their growth rate as these investments begin to mature. A reasonable expectation, perhaps, but one predicated on the continued expansion of a system that is already straining the limits of sustainability. It is a ledger of ambition, carefully calculated, and relentlessly pursued.

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2026-02-03 14:22