Brookfield invests $5B in Bloom Energy fuel cells for AI data centers

Brookfield Asset Management has agreed to invest up to $5 billion with Bloom Energy to deploy fuel cells for powering AI data centers, marking the first phase of their plan to build “AI factories” globally. This partnership addresses the critical energy infrastructure gap as demand for AI computing power rapidly outpaces what existing power grids can support, positioning both companies at the forefront of the AI infrastructure boom.

The big picture: Current projections show electricity demand for AI facilities will exceed what public power grids can handle in their current form, creating an urgent need for alternative energy solutions.

• Fuel cells use hydrogen-based chemical reactions to generate clean energy with low emissions and can operate on-site for years without connecting to existing power grids.
• The companies expect to announce plans later this year for their first jointly-designed facility in Europe, with global expansion planned thereafter.

Why this matters: Brookfield is positioning itself as a key infrastructure provider for the AI revolution, with plans to invest $200 billion in AI factories across North America, Europe, and Britain.

• CEO Bruce Flatt has indicated this massive investment is likely “just the beginning” of the company’s AI infrastructure strategy.
• The deal represents Brookfield’s first investment in a new dedicated AI infrastructure fund targeting the burgeoning sector.

Key details: Bloom Energy’s fuel cells already provide hundreds of megawatts of electricity to major data center operators including Oracle and Equinix.

• Equinix operates data centers in Canada and maintains a $15 billion joint venture with the Canada Pension Plan Investment Board.
• Last month, Brookfield also partnered with Figure AI to help develop humanoid robots for homes and businesses.

What they’re saying: “On-site power solutions such as Bloom Energy’s fuel cells are essential to closing the grid gap for AI factories,” said Sikander Rashid, global head of AI infrastructure at Brookfield.

• “This partnership adds a powerful new tool to our global growth strategy, especially in a grid-constrained market environment.”

Meanwhile: Brookfield announced it’s spending $3 billion to acquire the remaining 26% stake in credit manager Oaktree Capital Group that it didn’t already own.

• Brookfield initially bought 62% of Oaktree in 2019 and has gradually increased its ownership since then.
• Oaktree’s assets under management have grown 75% since Brookfield took control, with results “surpassing expectations,” according to Flatt.