The Best Artificial Intelligence (AI) Data Center Play You’ve Never Heard of for 2026
The Best Artificial Intelligence (AI) Data Center Play You’ve Never Heard of for 2026
Publish Date: 2026-01-28 00:42:00
Source Domain: www.nasdaq.com
-
Partnerships with Tech Giants: Brookfield Renewable Partners has secured deals with major technology firms like Microsoft and Google to supply clean energy for their data centers, driven by the critical need for reliable electricity for AI functionalities.
-
Stable Investment Yields: With an average annual yield of 5.2%, Brookfield Renewable Partners offers income-focused investors a stable return, and aims to increase its distribution by 5% to 9% annually. Its contracts are typically long-term, helping to generate reliable cash flows.
-
Involvement in Nuclear Power: The company holds a 50% stake in nuclear power giant Westinghouse, which could substantially boost its growth prospects, especially as nuclear power and demand for electricity continue to rise in line with AI and data center expansions.
-
Future Investments and Growth Plans: Brookfield plans substantial capital investments over the next five years, targeting between $9 billion and $10 billion. These investments aim to drive funds from operations growth of over 10% annually, supporting the company’s distribution growth targets.
-
Global Diversification: Brookfield’s clean energy portfolio includes diverse forms of renewable energy sources like solar, wind, hydroelectric, battery, and nuclear power, ensuring resilience against sector-specific risks.
-
High Contractual Stability: About 70% of Brookfield Renewable’s contracts are indexed for inflation with an average contract length of 13 years, securing long-term revenue for its investors.
-
Considerations for Investors: While the potential for growth is high, Brookfield Renewable Partners wasn’t included in The Motley Fool Stock Advisor’s top 10 stocks recommendation list, indicating a need for due diligence before purchasing. There is also a consideration in terms of yield for those preferring Brookfield Renewable Corporation, a separate entity with lower yield but similar business model.
