Brookfield Commits $10B To Sweden's AI Expansion: Retail Sees No Reason To Cheer

Brookfield Asset Management (BAM) has announced a potential investment of up to SEK 95 billion (approximately $10 billion) to develop AI infrastructure in Sweden, marking one of its largest AI initiatives in Europe to date.

The funding will be directed toward developing a large-scale AI center in Strängnäs, forming a key component of Sweden's digital infrastructure aligned with its national AI goals. 

The facility is expected to grow its capacity from 300 megawatts (MW) to 750 MW, supported by a land deal encompassing around 350,000 square meters.

Brookfield expects the Strängnäs facility to create over 1,000 permanent positions, with another 2,000 jobs expected during the 10- to 15-year construction phase. 

“To compete in the development of AI and realize its economic productivity, it is important to invest at scale in the infrastructure underpinning this technology,” said Head of Europe, Brookfield, Sikander Rashid.

According to a Reuters report, the growing adoption of AI and regulations mandating data storage within Europe have sparked a surge in data center development across the region. 

Companies like Microsoft Inc. (MSFT), Meta Platforms Inc.(META), and Alphabet Inc. (GOOG, GOOGL) have selected Sweden for their facilities, drawn by the country's dependable power supply, infrastructure, and strong connectivity.

 Brookfield's AI infrastructure includes more than €100 billion ($114 billion) allocated to areas such as digital connectivity, clean energy, and semiconductor ventures worldwide. 

In early 2024, the company introduced a €20 billion investment program in France, which features a €10 billion commitment to the country's inaugural AI manufacturing facility.   

The New York-based global alternative asset manager oversees over $1 trillion in assets, focusing on long-term investments in real assets and essential service sectors.

On Stocktwits, retail sentiment around Brookfield remained in 'bearish' territory.

Brookfield stock has gained over 4% year-to-date and over 44% in the last 12 months.

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