In the high-stakes world of artificial intelligence, where demand for computing power surges like a relentless tide, Brookfield Asset Management is making a calculated plunge into uncharted waters. The Toronto-based investment giant, long known for its prowess in infrastructure and real estate, announced plans to launch its own cloud computing business, aiming to lease specialized chips directly to AI developers. This move, revealed in a report by [The Information](https://www.theinformation.com/articles/brookfield-start-cloud-business-lower-cost-ai), positions Brookfield as a formidable challenger to established tech behemoths like Amazon and Microsoft, promising to slash costs in an industry gripped by skyrocketing expenses.
## Brookfield’s AI Power Play: Seizing Control of the Cloud to Fuel Tech’s Next Boom
At the heart of this initiative is Radiant, a new cloud company that Brookfield will operate, tied closely to a freshly minted $10 billion AI fund. The strategy is straightforward yet ambitious: by controlling data centers and the chips within them, Brookfield seeks to streamline the AI supply chain, offering developers a more affordable path to building and running sophisticated models. Recent reports indicate that the firm is already developing data center projects in diverse locations including France, Qatar, and Sweden, leveraging its global footprint to meet the voracious needs of AI workloads.
This isn’t Brookfield’s first foray into AI-related investments. Just months earlier, in November 2025, the company unveiled a sweeping $100 billion AI infrastructure program, partnering with heavyweights like Nvidia and the Kuwait Investment Authority. As detailed in a press release from [Brookfield Asset Management](https://bam.brookfield.com/press-releases/brookfield-launches-100-billion-ai-infrastructure-program), the program is anchored by a $5 billion commitment to an AI infrastructure fund, with ambitions to scale up dramatically. The cloud business emerges as a natural extension, allowing Brookfield to not only build but also operate the very facilities powering the AI revolution.
## Vertical Integration in the AI Era
Brookfield’s approach draws on its deep expertise in energy and infrastructure, areas critical to sustaining AI’s energy-intensive operations. Industry observers note that AI data centers consume electricity on a scale comparable to small cities, and Brookfield’s ownership of renewable power assets positions it uniquely to address this challenge. Posts on X from analysts like those at TENET RESEARCH highlight how this vertical integration—from power generation to chip leasing—could pressure traditional cloud providers by offering end-to-end cost efficiencies.
The timing couldn’t be more opportune. As AI frenzy intensifies, projections from Brookfield itself suggest that global spending on AI infrastructure could reach $7 trillion over the next decade, with trillions allocated to chips, data centers, and power systems. A post by investor Beth Kindig on X echoed this sentiment, pointing to the firm’s forecast of a tenfold increase in AI data center capacity by 2034, driven largely by inference tasks rather than training. This surge underscores the opportunity Brookfield is targeting, especially as tech giants grapple with supply constraints and escalating costs.
Competitors are taking notice. Amazon Web Services, Microsoft Azure, and Google Cloud dominate the market, but Brookfield argues its model can undercut them by eliminating intermediaries. According to coverage in [Reuters](https://www.reuters.com/business/retail-consumer/brookfield-start-cloud-business-amid-ai-frenzy-information-reports-2025-12-31/), the firm’s strategy involves direct leasing of chips inside data centers, bypassing the need for developers to purchase hardware outright or rely on pricey third-party services. This could democratize access to AI tools, particularly for startups and mid-sized firms squeezed by the current oligopoly.
## Partnerships and Global Ambitions
Key to Brookfield’s plan is its collaboration with Nvidia, whose GPUs are the lifeblood of AI computing. Nvidia’s involvement, as mentioned in posts from its own newsroom on X, includes providing blueprints for “AI factories” based on advanced architectures like Vera Rubin. This partnership lends technical credibility to Radiant, ensuring that Brookfield’s offerings are at the cutting edge. The $100 billion program, detailed further in reports from [SiliconANGLE](https://siliconangle.com/2026/01/01/report-brookfield-asset-management-launch-cloud-business-focused-lower-cost-ai-infrastructure/), aims to deploy these facilities rapidly, addressing the bottleneck of chip availability that has plagued the industry.
Geographically, Brookfield is casting a wide net. The data center developments in France, Qatar, and Sweden, as reported by [Yahoo Finance](https://finance.yahoo.com/news/brookfield-start-cloud-business-amid-155305494.html), reflect a strategic diversification to mitigate risks from geopolitical tensions and energy shortages. In Europe, for instance, stringent regulations on data sovereignty and sustainability play to Brookfield’s strengths in green energy. Meanwhile, in the Middle East, partnerships with sovereign wealth funds like Qatar’s could unlock vast capital for expansion.
Skeptics, however, question whether a private-equity firm can truly compete in a tech-driven field. Traditional cloud providers boast ecosystems of software tools and services that go beyond mere hardware leasing. Yet Brookfield’s proponents argue that its infrastructure DNA provides a moat: owning the physical assets means greater control over costs and scalability. A recent article in [The Economic Times](https://m.economictimes.com/tech/technology/brookfield-to-start-cloud-business-amid-ai-frenzy-the-information-reports/amp_articleshow/126282183.cms) notes that this move adds competitive pressure on incumbents, potentially sparking a price war in AI cloud services.
## Risks and Regulatory Hurdles
No bold venture is without pitfalls. The AI sector faces scrutiny over energy consumption and environmental impact, with data centers drawing criticism for their carbon footprint. Brookfield’s emphasis on renewables could mitigate this, but scaling up to meet demand remains a significant challenge. Additionally, regulatory hurdles, such as data privacy and security laws, may hinder Brookfield’s efforts to deploy its facilities globally. The firm must carefully navigate this landscape to avoid costly setbacks.
