It’s becoming increasingly difficult not to see the impact that artificial intelligence and cloud computing are having on our daily lives. And to power that growing reliance, hyperscale platforms have an insatiable demand that requires a significant data centre buildout.
Global investment is expected to hit $650 billion over the next few years. That means any data centre buildout represents not only a long-term shift in digital capacity, but for investors, a massive opportunity.
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Why the global data centre buildout is accelerating
The rapid rise of AI is reshaping the digital landscape. Training and running large AI models require enormous computing power. That in turn requires more data centre capacity.
Concurrently, cloud migration continues to accelerate as enterprises shift workloads off‑premise, and hyperscale providers are rapidly expanding their global footprints.
Together, these forces are driving a massive multi‑year investment cycle we haven’t seen in decades. Perhaps most importantly, this represents a long-term trend that’s shifting the entire market rather than a short-term infrastructure spike limited to a few players.
In short, the data centre buildout is becoming a defining theme for global infrastructure investing. That’s the basis for the $650 billion buildout.
For investors, there’s one company set to benefit from that data centre buildout.
Meet the Canadian company positioned to benefit
That company is Brookfield Infrastructure Corporation (TSX:BIPC). Brookfield Infrastructure stands out as one of the few Canadian companies with exposure to the global data centre buildout.
Brookfield Infrastructure is part of the larger Brookfield family that is known to most investors. But unlike its sibling companies, Brookfield Infrastructure is focused on large‑scale digital infrastructure projects across multiple regions.
Brookfield Infrastructure’s global reach puts it in the markets where data‑centre demand is growing the fastest. Additionally, the company’s experience in developing and operating critical infrastructure on a global scale makes it appealing to hyperscale customers, cloud providers, and enterprise clients.
Brookfield Infrastructure has been increasing its exposure to data centres through acquisitions, partnerships, and development. The company has invested in facilities across North America, Europe, and Asia, aligning its portfolio with regions experiencing the strongest digital growth.
These assets often come with long‑term contracts and multi-year commitments, providing predictable cash flows.
The result is a recurring revenue stream for the company with inflation-linked pricing. This provides Brookfield Infrastructure with both stability and growth potential, allowing the company to invest in further growth and pay its dividend.
Why Brookfield Infrastructure stands out for investors
Brookfield Infrastructure offers a unique combination of stability and exposure to high‑growth digital trends. The company is supported by long‑term, inflation‑protected contracts, and this provides some protection from short‑term market volatility.
Additionally, Brookfield Infrastructure’s investment in the data centre buildout gives investors access to one of the fastest‑growing areas of global infrastructure.
Brookfield Infrastructure is also known for its disciplined approach to capital allocation. The company, and by extension the Brookfield family, has a strong track record of investing in assets that generate strong returns while maintaining a balanced financial profile.
This approach allows Brookfield Infrastructure to participate in the data centre buildout without taking on excessive risk.
Factor in Brookfield Infrastructure’s growing quarterly dividend, and you have one of the best options on the market for both growth and income investors.
As of the time of writing, Brookfield Infrastructure’s dividend offers a yield of 4.53%.
Are you investing in the data centre buildout?
The $650 billion data centre buildout represents one of the most significant infrastructure opportunities of the decade.
For investors seeking exposure to that opportunity but without the volatility of pure‑play technology stocks, Brookfield Infrastructure offers a compelling alternative.
With its global footprint, strong partnerships, and growing portfolio of digital assets, Brookfield Infrastructure is a great addition to any well-diversified portfolio.
