Brookfield Launches AI Infrastructure Strategy, Invests $300 Billion

Brookfield Asset Management has successfully launched its new artificial intelligence (AI) infrastructure strategy, attracting investors and securing related transactions. The company is positioning itself to capitalize on what it believes is a multi-trillion-dollar opportunity in the AI infrastructure sector. Connor Teskey, the chairman of Brookfield, highlighted that the greatest opportunity lies in private capital funding the large-scale construction of AI infrastructure both domestically and globally.

In August, Brookfield announced a strategy specifically aimed at developing AI infrastructure, named the "Brookfield AI Infrastructure Fund," which is set to launch in the autumn. This initiative comes as data center construction is on the rise. Bruce Flatt, the CEO of Brookfield, emphasized that the global scale of AI infrastructure is vast and continues to expand annually. He noted that public sectors need to be involved in the development of AI, as they too require substantial related capabilities.

Flatt explained that the process is still in its early stages and that governments will have to drive the widespread adoption of AI because they themselves need a lot of these capabilities. Brookfield and its numerous competitors are heavily investing in the demand for data centers that support AI. Brookfield has already invested tens of billions of dollars in this sector, including approximately $100 billion in Sweden to establish an AI center and a commitment of around $200 billion in France for the development of data centers and other AI infrastructure.

Teskey stated that the new strategy aims to dedicate resources globally to build super factories for large AI enterprises and provide long-term funding for this growth trend. He added that due to strong customer demand, this momentum is expected to continue. Teskey also noted that after years of stagnation, the real estate sector has shown strong fundamentals in the past year, and the capital market is expected to fully open by 2025. He observed that this has been reflected in transaction volumes and valuations.

In the private credit sector, Teskey believes there is a significant market demand for asset-backed loans, a thriving industry where loan collateral can range from music copyrights and yachts to industrial equipment and other assets. This strategic move by Brookfield underscores the company's commitment to leveraging private capital to support the growing demand for AI infrastructure, positioning itself as a key player in this rapidly evolving sector.