BEP: The AI Power Play (It’s Electric!)

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Listen up, folks! You think building a data center is like building a sandcastle? Wrong! It requires… power. And not the kind you get from positive thinking, believe me, I’ve tried. We’re talking electricity, the lifeblood of artificial intelligence. Without it, those fancy AI robots are just very expensive paperweights. That’s why the big boys – Microsoft and Alphabet’s Google, to name a couple – are handing the keys to their power grid to Brookfield Renewable Partners (BEP +1.91%). Yes, that Brookfield. They’re not selling real estate, they’re fueling the future…and possibly a robot uprising, but let’s not dwell on that.

Now, some of you are probably thinking, “Renewable energy? Isn’t that for tree-huggers?” To which I say, “Of course! But also, for companies that want to avoid a PR disaster when their data centers suck up enough power to dim an entire state!” Let’s talk numbers, shall we? This isn’t just a feel-good investment, it’s a potential goldmine, disguised as a…well, a renewable energy company.

What Does Brookfield Renewable Partners Actually Do?

Okay, so they don’t just sit around planting daisies. Brookfield Renewable Partners owns a whole mess of clean energy assets. Solar, wind, hydroelectric, even nuclear! It’s like a one-stop shop for anyone who wants to power their operations without feeling guilty about melting the polar ice caps. They sign long-term contracts, which means steady cash flow, and steady cash flow means…well, you get the idea. It’s a beautiful thing, really. Like a well-oiled, eco-friendly money machine.

As of the third quarter of 2025, their contracts averaged 13 years – that’s longer than some marriages, folks! – and roughly 70% were indexed for inflation. Which is smart. Very smart. Because even robots need a raise, you know. Plus, 75% of their revenue comes from developed countries. Stable. Reliable. The kind of boringly good investment your accountant will love. And let’s be honest, accountants need a little excitement too.

The AI Opportunity: It’s Bigger Than You Think

Now, here’s where it gets interesting. Brookfield has deals in place to supply Google with 3 gigawatts of power for their data centers. 3 gigawatts! That’s enough to power…a lot of computers. And Microsoft? They’re even bigger spenders, committing to 10.5 gigawatts! These aren’t short-term fixes, mind you. We’re talking about future developments. Brookfield expects to invest between $9 billion and $10 billion over the next five years. That’s a lot of windmills, people. A lot of windmills.

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This spending is projected to boost their funds from operations by 10% or more annually. And that, in turn, will support a dividend growth target of 5% to 9% per year. So, it’s not just a high-yield play; it’s a dividend growth story. It’s like getting paid to save the planet, only with slightly more paperwork.

Westinghouse: The Nuclear Option (Don’t Panic!)

But the real hidden gem here, folks, is their investment in Westinghouse. Nuclear power is making a comeback! I know, I know, everyone gets nervous about nuclear. But let’s be rational. Roughly 85% of Westinghouse’s revenue comes from services, and a new $80 billion deal with the U.S. government to build nuclear reactors suggests there’s more to this business than meets the eye. Especially with power-hungry AI data centers demanding more and more electricity. It’s like giving those robots a super-sized battery pack.

If you’ve never heard of Brookfield Renewable Partners, now might be the time to take a closer look. For those who prefer corporate structures, there’s Brookfield Renewable Corporation (BEPC +2.39%). But be warned: high institutional demand has pushed the yield down to a mere 3.7%. A paltry sum, I tell you! Paltry! But hey, at least you’ll be supporting the robots.

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2026-01-28 08:32