Brookfield said to seek $10b for AI infrastructure fund

Brookfield Asset Management is seeking US$10 billion for a new fund focused on AI infrastructure, according to a Wall Street Journal report.

The Canadian investment firm has reportedly secured US$5 billion from backers including Nvidia, the Kuwait Investment Authority, and its own balance sheet.

Brookfield plans to use the fund, along with co-investments and debt, to build and acquire up to US$100 billion worth of AI infrastructure.

The company, which manages over US$1 trillion in assets globally, will invest across areas such as data centers, power providers, and chip manufacturing.

Most of the capital is expected to go toward building new facilities on undeveloped land, the report said.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Brookfield needs power and permits to build AI infrastructure

Brookfield’s US$100 billion AI build relies on finding locations with existing power and grid ties. Recent moves include up to US$5 billion with Bloom Energy for behind-the-meter fuel cells (onsite power that bypasses parts of the distribution grid) 1. A hydro framework with Google opens procurement of up to 3,000 megawatts of hydroelectric capacity 2. A partnership with the U.S. government and Cameco targets at least US$80 billion to build new Westinghouse reactors 3. The plan tackles grid constraints, with interconnection waits of 18 to 48 months 4.
The pipeline depends on firm power purchase agreements, interconnection-queue slots (a utility’s waitlist to connect new projects to the grid), and permitted sites in specific regions. Many groups place compute next to generation (placing compute next to the plant) to cut timelines. Repurposed coal plant properties come with transmission gear 5. Regulators can still block deals, as the Federal Energy Regulatory Commission (FERC) rejected an Amazon Web Services (AWS) and Talen Energy plan to expand a co-located site in Pennsylvania 4.

Developers can make money by packaging entitled power plant sites

Power-constrained AI buildouts drive demand for third parties to acquire, entitle (secure permits and approvals for), and package decommissioned power plant sites with existing transmission capacity. About 120 U.S. coal plants will close over the next five years 5. Many have high-voltage grid connections, large parcels, or industrial zoning that ease permits. Homer City’s 4.5 gigawatts gas plant project on a retired coal property shows the model 6.
Infrastructure developers plus real estate investors can target these locations, complete environmental due diligence or zoning approvals, then lease or sell to Brookfield or similar buyers. TeraWulf (a digital infrastructure and energy developer) signed an 80-year lease for 183 acres at a former coal plant in New York 7. It also plans a 180 MW data center at Pennsylvania’s Cheswick coal plant site 8. Early scouts who catalog retired plants and secure options can earn premiums as AI demand outruns grid capacity.