A 950-terawatt-hour (TWh) electricity bill is hard to ignore. That is roughly where global data centre power demand could land by 2030, according to the International Energy Agency. The agency expects data centre electricity use to roughly double from 2025 levels, while artificial intelligence (AI)-focused data centres could see consumption triple over the same period.
So yes, AI may feel like software. In reality, it needs land, cables, cooling, transmission, and an enormous amount of electricity. Chatbots do not float around in a sparkly little cloud. They need power plants.
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The Canada connection
Canada wants a piece of that buildout. Innovation, Science and Economic Development Canada launched a 2026 call for proposals to support large-scale sovereign AI data centres. The government said these facilities should be able to scale to at least 100 megawatts (MW) and serve Canadian clients across the economy.
That creates a simple investor question. Who benefits if Canada builds more data centres?
The obvious answers are real estate owners, construction firms, and chip companies. Yet the less obvious answer may be power providers. Data centres can only run where electricity is available, reliable, and increasingly clean. That puts renewable power companies in a stronger position than even a few years ago.
BEP
Investors looking for a Canadian stock tied to that trend should consider Brookfield Renewable Partners (TSX: BEP.UN). Brookfield Renewable stock operates one of the world’s largest publicly traded renewable power platforms. Its portfolio includes hydro, wind, solar, storage, and decarbonization assets across global markets. The company recently listed about 47 gigawatts (GW) of operating capacity and more than 200 GW in its development pipeline.
That scale gives Brookfield Renewable stock something many smaller clean-power companies do not have: the ability to serve huge corporate customers. Data centre operators do not need a charming little solar project and a handshake. They need large, long-term power solutions with serious execution behind them.
Brookfield Renewable stock already proved it can land those deals. In 2024, the company announced an agreement with Microsoft to deliver more than 10.5 GW of new renewable energy capacity between 2026 and 2030 in the United States and Europe, with room to expand into other regions.
Looking ahead
The latest earnings help the case. Brookfield Renewable stock reported record first-quarter funds from operations of US$375 million, or US$0.55 per unit, up 15% per unit year over year.
Funds from operations (FFO) is the key number for this business. It shows the cash-generating strength of Brookfield’s assets before accounting noise clouds the picture. For a renewable power company with long-life assets, contracted revenue, and a large development pipeline, cash flow growth matters far more than a flashy headline.
The valuation also gives income investors something to like. Brookfield Renewable stock trades at 1.6 times sales, offering up a 4.8% dividend yield. That yield is not the whole story, though. Brookfield Renewable stock’s appeal comes from the combination of income and long-term electricity demand. If AI, electrification, and data centres keep pushing power needs higher, Brookfield Renewable stock has many ways to grow without betting everything on one project.
The risk is execution. Renewable projects still need capital, permits, grid connections, and customers. Higher interest rates can pressure valuations, while delayed projects can slow growth. Data centres may also choose natural gas, nuclear, or behind-the-meter power in some regions, which means renewables will not win every contract.
Bottom line
The trend looks too large to ignore. Canada’s data centre buildout will need power first and pretty buildings second. Brookfield Renewable stock gives investors a way to own the electricity side of that growth, collect a solid distribution, and wait while AI keeps asking the grid for more.
