Brookfield Corporation is making a bold move to harness what many consider a transformative opportunity in AI infrastructure. As artificial intelligence emerges as a potentially groundbreaking technology, the need for the appropriate infrastructure to support its growth becomes critical. Brookfield estimates that the world will need to invest approximately $7 trillion in AI infrastructure over the next decade to unlock the full capabilities of this technology, which is poised to enhance productivity, solve complex problems, and accelerate medical advancements.
Recognizing the significance of this investment landscape, Brookfield has launched its inaugural Brookfield AI Infrastructure Fund, with a goal to secure $10 billion in equity commitments. At the fund’s launch in November, it had already attracted $5 billion in commitments, bolstered by contributions from Brookfield itself and tech giant Nvidia. The firm aims to deploy these funds strategically across various facets of AI infrastructure, including energy supply, land acquisition, specialized data centers, and computing power. The overarching ambition is to acquire up to $100 billion in AI infrastructure assets, facilitating the construction of advanced data centers necessary for housing high-performance computing equipment, particularly Nvidia’s advanced chips.
A noteworthy initiative stemming from this fund is Radiant, a newly established cloud partner with Nvidia, designed to provide AI services leveraging Brookfield’s infrastructure. Radiant plans to develop AI factories—specialized data centers built following Nvidia’s architectural specifications aimed at optimizing AI functions for various companies.
Nvidia’s CEO, Jensen Huang, emphasized the crucial nature of building robust AI infrastructure, likening its importance to that of electricity. He expressed confidence that Brookfield’s partnership will unite essential resources such as land, power, and specialized supercomputers, creating an agile, ready-to-deploy AI cloud solution.
Brookfield’s engagement with AI infrastructure extends beyond the initial fund. The firm boasts a diverse investment portfolio that encompasses infrastructure and energy through its other funds and listed companies like Brookfield Infrastructure and Brookfield Renewable. Additionally, Brookfield maintains a strong credit investment platform, positioning itself to provide necessary capital for projects within the AI infrastructure domain.
The company is optimistic about its growth trajectory, projecting a 25% annual increase in earnings per share over the next five years. Despite these promising projections, Brookfield’s stock currently trades at around $45, significantly below its estimated intrinsic value of $68 per share. The strategic roadmap laid out by Brookfield indicates ambitions to elevate the stock price to $130 by 2030.
While Brookfield may not instantly be recognized as an AI-focused entity, its strategic maneuvers and partnerships, particularly with Nvidia, are carving out its identity as a key player in AI infrastructure. This unique positioning—coupled with the potential for substantial earnings growth—underscores why many view Brookfield as an attractive investment opportunity in the burgeoning AI landscape.
