Brookfield commits $33B to European AI infrastructure buildout

Canadian investment giant Brookfield Asset Management is making a massive bet on the infrastructure gold rush powering artificial intelligence, committing over $33 billion to European AI projects as demand for specialized computing facilities explodes worldwide.

The Toronto-based asset manager, which oversees more than $900 billion in assets across real estate, infrastructure, and renewable energy, announced a dedicated investment strategy targeting the complex web of physical infrastructure that AI systems require to function. This isn’t just about building more data centers—it’s about creating an entirely new category of industrial facilities designed specifically for AI’s voracious appetite for computing power and energy.

The scale of opportunity

Brookfield’s leadership believes the AI infrastructure buildout represents one of the largest investment opportunities in decades. In their latest investor letter, CEO Bruce Flatt and President Connor Teskey outlined the staggering capital requirements ahead: approximately $7 trillion in physical infrastructure investment needed within the next decade alone to unlock AI’s estimated $10 trillion in potential productivity gains.

“While the potential of AI is widely acknowledged, the scale of infrastructure investment and the operating capabilities required to support its growth remain underappreciated,” the executives wrote. “Trillions of dollars are required.”

This infrastructure encompasses far more than traditional data centers. AI systems require specialized GPU infrastructure—powerful graphics processing units that can handle the massive parallel computations needed for AI training and inference. They also need liquid cooling systems to manage the intense heat these chips generate, high-speed fiber networks for rapid data transfer, and even robotics manufacturing facilities and recycling infrastructure to support the hardware lifecycle.

Europe as the testing ground

Brookfield’s European investments serve as a blueprint for its global AI infrastructure strategy. The company has committed SEK95 billion ($9.8 billion) over 10 to 15 years for AI infrastructure development in Sweden, centered on a major facility in Strängnäs that will more than double its capacity from 300 megawatts to 750 megawatts. This expansion will create over 1,000 permanent jobs and support another 2,000 construction positions throughout the build-out period.

The Swedish project represents one of Brookfield’s largest AI investments in Europe and extends the company’s partnership with government authorities, academic institutions, and businesses across the region. Sweden’s abundant renewable energy resources, stable political environment, and strategic location make it an attractive hub for energy-intensive AI operations.

In France, Brookfield announced an even larger commitment: €20 billion ($22.8 billion) for infrastructure development, including €10 billion for the country’s first “AI factory.” This facility will provide 1 gigawatt of new capacity, making it Europe’s largest AI infrastructure cluster according to the company.

Why governments are eager partners

The enthusiasm from European governments reflects a broader recognition that AI infrastructure has become critical national infrastructure, similar to highways or power grids in previous eras. Countries that can attract these investments gain significant economic advantages: immediate job creation during construction, permanent high-tech employment, and positioning as hubs for AI innovation.

“Most governments have realized that AI technology is a productivity-enhancing tool in the medium term, and the development of AI infrastructure is a local economy stimulator in the short term,” explained Sikander Rashid, Brookfield’s head of Europe operations.

This dual benefit explains why governments are willing to provide land allocation agreements, regulatory support, and other incentives to attract these massive infrastructure investments.

Serving the hyperscalers

Brookfield’s strategy focuses on serving “hyperscalers”—the cloud computing giants like Amazon Web Services, Microsoft Azure, and Google Cloud that provide the underlying infrastructure for most AI applications. These companies face enormous capital requirements to build AI-capable infrastructure but prefer to lease capacity rather than tie up their balance sheets with massive construction projects.

“We see an opportunity to provide GPU infrastructure as a service under long-term contracts, easing the burden on corporate balance sheets,” Brookfield’s leadership noted. This approach allows hyperscalers to access cutting-edge AI infrastructure through predictable operating expenses rather than massive capital investments.

The model also extends to enterprises and government agencies that need AI capabilities but lack the expertise or resources to build their own infrastructure. By providing turnkey AI infrastructure solutions, Brookfield can serve a broader market than traditional data center operators.

The infrastructure advantage

Brookfield’s confidence stems from its decades of experience in large-scale infrastructure development and its integrated approach to complex projects. The company has already deployed tens of billions of dollars in AI-related infrastructure and maintains a pipeline of additional opportunities that align with its capabilities.

Unlike pure-play technology companies or traditional real estate developers, Brookfield brings expertise in power generation, transmission infrastructure, and large-scale construction management—all critical components for AI infrastructure projects. This integrated capability allows the company to control more of the value chain and potentially achieve better returns than competitors who must rely on third-party providers for key components.

Looking ahead

As AI adoption accelerates across industries, the infrastructure supporting these systems becomes increasingly strategic. Brookfield’s early and substantial commitments position the company to capture significant value from this transformation while helping solve one of the key bottlenecks limiting AI deployment: the availability of specialized, high-performance computing infrastructure.

The success of Brookfield’s European projects will likely serve as templates for similar investments across North America, Asia, and other regions where AI adoption is accelerating. For a company built on identifying and capitalizing on long-term infrastructure trends, the AI buildout represents exactly the type of generational investment opportunity that has driven Brookfield’s growth for decades.