Brookfield $BN Leads Green and AI Investment Wave with Google Deal

The intersection of renewable energy and digital infrastructure represents one of the most compelling investment themes for the coming decade. Brookfield Corporation (BN), through its subsidiaries Brookfield Renewable Partners (BEP) and Brookfield Infrastructure Partners (BIP), stands as a formidable player in both arenas. With a recent landmark agreement to supply hydroelectric power to tech giants, alongside a robust portfolio spanning renewable assets and data centres, the company is uniquely positioned to capitalise on two structural growth trends: the global shift to greener energy and the insatiable demand for AI-driven computing power.

Green Transition: A Core Strength

Brookfield Renewable Partners operates one of the largest publicly traded platforms for renewable power, with a diversified portfolio of hydroelectric, wind, solar, and distributed energy assets across five continents. A significant development in July 2025 underscores this strength: a framework agreement with Google to deliver up to 3,000 MW of hydroelectric power in the United States, including contracts worth over $3 billion for an initial 670 MW. This deal, described as the largest of its kind, highlights Brookfield’s ability to align with the sustainability goals of major corporations while securing long-term revenue streams.

Financially, BEP has shown resilience. For Q1 2025 (January to March), the company reported funds from operations (FFO) growth, driven by strong hydroelectric output and new capacity additions, as per their latest unitholder letter. This builds on a solid 2024, where annual FFO grew by approximately 10% year-over-year, reflecting the scalability of their renewable portfolio. With global electricity demand projected to rise significantly—partly due to data centre expansion—renewables are expected to account for a substantial share of new capacity, and Brookfield is well-placed to benefit.

AI Infrastructure: Riding the Data Centre Wave

Parallel to its renewable energy focus, Brookfield Infrastructure Partners has made strategic inroads into digital infrastructure, particularly data centres, which are critical to the AI boom. The hyperscaler market—dominated by firms like Microsoft, Amazon, Meta, and Google—is anticipated to spend upwards of $300 billion annually on data centre infrastructure in 2025, according to industry estimates. BIP’s portfolio includes ownership and operation of data centre assets, positioning it to capture a slice of this capital expenditure wave.

In Q1 2025 (January to March), BIP reported robust performance, with organic growth in FFO driven by inflation-linked contracts and contributions from recent acquisitions in the data centre space, as detailed in their quarterly letter to unitholders. A notable tailwind is the escalating power demand from AI workloads, with data centres projected to account for a significant portion of global electricity consumption growth over the next decade. Brookfield’s dual exposure—supplying renewable power through BEP and hosting digital infrastructure via BIP—creates a rare synergy.

Financial Snapshot and Valuation

To contextualise Brookfield Corporation’s positioning, a glance at recent financial metrics is instructive. The table below summarises key figures for BN and its subsidiaries for Q1 2025 (January to March), alongside full-year 2024 data for comparison.

Management guidance suggests distributable earnings for BN could grow at a compounded annual rate of 15% over the next five years, potentially reaching $12.5 billion by 2030. At a conservative exit multiple of 15 times earnings, this implies a significant upside to current valuations. However, risks remain, including interest rate sensitivity for capital-intensive assets and potential regulatory hurdles in the renewable sector.

Balancing Risks and Opportunities

While the outlook appears promising, Brookfield’s sprawling operations are not without challenges. The capital recycling strategy—selling mature assets to fund new investments—requires precise execution, as evidenced by BIP’s achievement of its 2024 recycling targets in Q3 (July to September). Moreover, the data centre market, while lucrative, is becoming increasingly crowded, with hyperscalers themselves vertically integrating infrastructure ownership. Brookfield must differentiate through scale and energy efficiency, areas where its renewable expertise offers an edge.

On the sentiment front, discussions on platforms like X have noted Brookfield’s dual exposure to green transition and AI infrastructure as a compelling narrative, with some investors expressing optimism about the long-term trajectory of BN and its subsidiaries. Yet, sentiment alone does not drive value; execution and macroeconomic conditions will be critical.

Conclusion: A Compelling, If Complex, Proposition

Brookfield Corporation, through BEP and BIP, occupies an enviable position at the nexus of two defining trends: the global push for decarbonisation and the exponential growth of AI infrastructure. The recent hydroelectric agreement with Google is a testament to its strategic foresight, while financial metrics for Q1 2025 indicate sustained momentum. Investors must weigh this against operational risks and market dynamics, but for those seeking exposure to structural growth themes, Brookfield offers a nuanced, if not entirely straightforward, opportunity. One might say it’s a bit like investing in both the wind and the wires—plenty of power, provided the currents align.

References

• Brookfield. (n.d.). Renewable Power & Transition. Retrieved July 20, 2025, from https://www.brookfield.com/our-businesses/renewable-power-transition
• Brookfield Infrastructure Partners. (n.d.). Homepage. Retrieved July 20, 2025, from https://bip.brookfield.com/
• Brookfield Infrastructure Partners. (2025, April 30). Q1 2025 Letter to Unitholders. Retrieved from https://bip.brookfield.com/bip/reports-filings/letters-unitholders/bip-q1-2025-letter-unitholders
• Brookfield Infrastructure Partners. (2024, November 6). Brookfield Infrastructure Achieves Capital Recycling Target and Announces Third Quarter 2024 Results. Retrieved from https://bip.brookfield.com/press-releases/bip/brookfield-infrastructure-achieves-capital-recycling-target-and-announces-third
• Brookfield Renewable Partners. (n.d.). Homepage. Retrieved July 20, 2025, from https://bep.brookfield.com/
• Brookfield Renewable Partners. (2025, July 15). Brookfield and Google Sign Hydro Framework Agreement to Deliver up to 3,000 MW of Homegrown Energy in the United States. GlobeNewswire. Retrieved from https://globenewswire.com/news-release/2025/07/15/3115427/0/en/Brookfield-and-Google-Sign-Hydro-Framework-Agreement-to-Deliver-up-to-3-000-MW-of-Homegrown-Energy-in-the-United-States.html
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• OilPrice.com. (2025, July 15). Brookfield and Google Launch World’s Largest Hydropower Agreement. Retrieved from https://oilprice.com/Company-News/Brookfield-and-Google-Launch-Worlds-Largest-Hydropower-Agreement.html
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