Brookfield Corporation is strategically positioning itself to capitalize on the immense potential of artificial intelligence, which it views as a once-in-a-generation technological shift. The company anticipates an astonishing $7 trillion global investment in AI-related infrastructure over the coming decade. By leveraging its diverse portfolio and expertise spanning real estate, critical infrastructure, power generation, and capital deployment, Brookfield aims to be a frontrunner in establishing the foundational elements necessary for AI's widespread adoption and growth. This proactive approach, encompassing everything from advanced data centers to sustainable energy solutions, is expected to fuel substantial expansion and generate robust financial returns across its various platforms.
Artificial intelligence is poised to redefine numerous aspects of modern society, but its full realization is contingent on a robust and extensive infrastructure. Brookfield Corporation projects that the demand for AI infrastructure will necessitate over $1 trillion in spending by 2029, escalating to more than $7 trillion within the subsequent ten years. This massive investment is driven by the fact that AI operations require significantly more computational power\u2014up to ten times that of conventional workloads. Cloud computing giants, or hyperscalers, are already boosting their capital expenditures by 50% this year to $400 billion, underscoring the urgent need for expanded AI capabilities.
Developing this expansive AI ecosystem is a collaborative endeavor, as hyperscalers cannot undertake the entire build-out independently. They require strategic partners who can offer specialized knowledge, physical infrastructure, reliable power sources, and substantial capital. Brookfield Corporation is uniquely positioned to fulfill these demands, given its comprehensive expertise across every critical component of the AI innovation cycle. The company is a global leader in real estate development, infrastructure management, renewable energy solutions, and financial capital provision, making it an ideal partner in this transformative period.
A prime example of Brookfield's strategic involvement is through its infrastructure subsidiary, Brookfield Infrastructure. This entity boasts a vast global data infrastructure network, including over 300,000 telecommunication towers, multiple semiconductor manufacturing facilities in the U.S., extensive fiber optic cable networks, and more than 140 operational data centers worldwide, with a contracted capacity exceeding 1.7 gigawatts. The subsidiary is actively expanding its footprint by acquiring land to support future data center projects, with plans to increase its data center capacity by an additional 3.6 GW, representing a 50% surge from its 2023 development potential. This expansion highlights Brookfield's commitment to building the physical backbone for the AI revolution.
Furthermore, Brookfield Corporation's renewable energy division, Brookfield Renewable, is playing a crucial role in powering the AI megatrend. With a leading global portfolio of hydroelectric, wind, solar, and battery storage assets, the subsidiary has become a preferred partner for hyperscalers seeking sustainable energy solutions. Notable collaborations include a landmark hydro framework agreement with Google, potentially supplying up to 3 GW of carbon-free hydropower in the U.S., marking the largest corporate hydro deal to date. Additionally, Brookfield secured the largest-ever corporate power agreement with Microsoft, committing to deliver 10.5 GWs of renewable energy by 2030 through new projects across North America and Europe, further solidifying its role in enabling green AI infrastructure.
Brookfield Corporation foresees a substantial opportunity to invest approximately $200 billion in the development of AI factories across North America and Europe. This ambitious endeavor is grounded in the company's conviction that AI infrastructure will ultimately evolve into its most significant business segment. Such considerable investment in AI infrastructure is projected to drive an impressive 25% annualized increase in earnings per share over the next five years. Brookfield's multifaceted capabilities and strategic investments position it as a key player in shaping the future of artificial intelligence.
Brookfield Corporation is keenly focused on the expansive investment opportunities within AI infrastructure. The company is strategically harnessing its diverse strengths in property management, essential services, energy production, and financial solutions to support the widespread establishment of AI infrastructure. These targeted investments are poised to foster substantial earnings growth across its entire operational portfolio, making Brookfield an attractive option for investors looking to capitalize on this extraordinary chance to build the foundational infrastructure for artificial intelligence.