AI’s Biggest Bottleneck Isn’t Chips: These TSX Stocks Could Power the Next Boom

AI chips are impressive, but the real investing opportunity may be the power and fuel infrastructure needed to run data centres.

Key Points
  • Data centres will need much more reliable electricity, and grids and connections take years to build.
  • Brookfield Renewable offers diversified clean-power exposure, but returns depend on strong contracts and sustainable cash flow growth.
  • Enbridge can benefit indirectly through natural-gas infrastructure, but investors must watch cash flow and financing risk.

An artificial intelligence (AI) chip can perform astonishing calculations. Yet without electricity, it becomes an exceptionally expensive desk ornament.

That’s why investors looking beyond the obvious AI winners should pay attention to power. Chips still matter, and electricity won’t be the biggest constraint for every project. But generating enough dependable power, then connecting it to the right location, could determine how quickly the next wave of data centres gets built.

For Canadians, that creates an opportunity beyond technology stocks. Brookfield Renewable Partners (TSX: BEP.UN) and Enbridge (TSX: ENB) offer two different ways to invest in the infrastructure behind the screens.

AI investing could have upward trajectory

Source: Getty Images

The electricity bill is getting bigger

The International Energy Agency projects that global data centre electricity consumption will roughly double from 485 terawatt-hours (TW/h) in 2025 to 950 TW/h in 2030. That would represent approximately 3% of global electricity demand.

The problem isn’t simply producing more electricity somewhere. Data centres need reliable power where they operate, supported by transmission lines, grid connections, and equipment that can take years to develop.

That makes established energy infrastructure worth examining among Canadian stocks. However, a growing market only helps shareholders when companies can turn demand into profitable contracts without spending too much along the way.

Brookfield Renewable

Brookfield Renewable owns a diversified portfolio spanning hydroelectricity, wind, solar, and storage. That matters because supplying electricity reliably requires more than choosing whichever technology looks nicest in an investor presentation.

Wind and solar output varies. Storage can shift electricity into higher-demand periods, while hydroelectric assets can provide flexibility where water conditions and operating requirements allow.

Brookfield also has an operating business supporting the investment case today. Second-quarter 2026 funds from operations (FFO) reached US$421 million, with FFO per unit increasing 11% to US$0.62. FFO is a non-IFRS performance measure, not net earnings, but it helps investors evaluate the cash-generating performance of this asset-heavy business.

I’d consider Brookfield for long-term exposure to expanding electricity demand, with AI providing another potential customer base rather than the entire thesis. The catch is that power projects require serious money before producing returns. I’d judge the purchase price against sustainable FFO per unit, rather than assume any renewable-energy stock becomes cheap once someone mentions AI.

Enbridge

Enbridge offers a less obvious connection. Its natural gas transmission infrastructure supplies a fuel used by power plants, giving it potential exposure to rising electricity demand without manufacturing a single chip.

Gas-fired generation can complement variable renewable output. That doesn’t make it emissions-free, and additional infrastructure still faces permitting, construction, and environmental risks.

Enbridge’s second-quarter adjusted EBITDA increased to approximately $4.78 billion from $4.64 billion a year earlier. Its secured project backlog reached $41 billion, although that includes several businesses and shouldn’t be mistaken for $41 billion of AI-related projects.

I’d consider Enbridge as an established infrastructure holding with an additional growth opportunity, not a technology stock wearing a pipeline costume. Before buying, I’d weigh the price against distributable cash flow and check whether financing leaves enough room for both investment and shareholder payments.

Bottom line

Brookfield Renewable generates electricity. Enbridge helps move fuel that can produce it. Both offer exposure to needs that extend well beyond the latest chatbot.

I’d build either position gradually within a portfolio with proper diversification, watching contract quality, financing costs, and per-unit growth.

AI may create an enormous electricity bill. The investing opportunity is finding businesses that can collect part of it profitably.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Enbridge. The Motley Fool has a disclosure policy.

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