Key Points
Brookfield is investing up to $5 billion to deploy Bloom Energy's fuel cells in data centers.
The companies are collaborating to design and deploy AI factories powered with Bloom's fuel cells.
AI factories -- the large data centers being specially built to support AI training and operations -- require massive amounts of electricity to operate. Ideally, a highly stable, lower-carbon energy source should provide it.
Bloom Energy's (NYSE: BE) advanced fuel cell technology provides just what those AI data center operators need -- an ultra-resilient, scalable, and clean onsite solution. The company recently formed a $5 billion partnership with Brookfield Asset Management (NYSE: BAM) to build out AI factories powered by Bloom's fuel cells.
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Building AI factories
Brookfield's management recognizes AI's potential, and believes it will become the most impactful technology in history. As a result, it's seizing on a once-in-a-generation opportunity to help build the digital backbone needed to support the tech. Brookfield projects that total spending on AI infrastructure will surpass $1 trillion this decade and $7 trillion over the next 10 years.
This AI infrastructure "must be built like a factory -- with purpose, speed, and scale," stated Bloom Energy founder, Chairman, and CEO KR Sridhar in the press release unveiling the partnership. "Unlike traditional factories, AI factories demand massive power, rapid deployment, and real-time load responsiveness that legacy grids cannot support." Brookfield shares this belief. That is what led the companies to collaborate on reimagining how to build the data centers of the future to power AI at scale.
As part of this collaboration, Brookfield will invest up to $5 billion to deploy Bloom Energy's advanced fuel cell technology in AI data centers. Together, the companies will design and deliver AI factories on a global scale, with their first site expected to be in Europe.
The power struggle
Foundational models and generative AI will need a massive amount of power in the coming decades. Forecasters estimate that electricity demand from AI data centers in the U.S. alone will surpass 100 gigawatts (GW) by 2035. That's up from a mere 4 GW last year.
Providing that power will require an "all of the above" approach that includes traditional energy sources such as new natural gas power plants, additional renewable energy capacity, and innovative solutions like fuel cells.
Brookfield is investing heavily in the power side of the equation. It has partnered with institutional investors and its sibling, Brookfield Renewable, to build out a massive global renewable power platform with leading development capabilities. The company currently controls over 46 GW of power-generation capacity, spanning hydro, wind, solar, and battery storage. Additionally, the company has about 230 GW of renewable energy development projects in its pipeline, including 74 GW that are already in advanced stages. These projects will be crucial to supporting the surging power needs of AI.
The company is also spending a tremendous amount of capital on the computing power side of things. Brookfield, its institutional partners, and another sibling, Brookfield Infrastructure, are building a global data center platform, investing in two U.S.-based semiconductor fabrication facilities, and investing in related data infrastructure such as fiber networks. Brookfield and its partners have invested over $100 billion into digital infrastructure around the world. The company's investments in data infrastructure have helped drive its power investment thesis.
Through the partnership with Bloom Energy, Brookfield can build on these efforts and further capitalize on the opportunity to develop new AI factories. Leveraging expertise in both data center development and power, Brookfield aims to create scalable global solutions and speed the deployment of AI -- without worrying about the limitations of local power grids.
A powerful growth driver
Bloom Energy's fuel cells will play an increasingly important role in helping provide AI with the stable power it needs. Its partnership with Brookfield lays the groundwork for what the future of AI data centers could look like, with on-site power provided by fuel cells. It could help drive powerful growth for Bloom Energy and Brookfield in the coming years.
Matt DiLallo has positions in Brookfield Asset Management, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool recommends Brookfield Asset Management, Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.