Brookfield Asset Management, a Canadian multinational investment firm, has embarked on a substantial initiative by investing up to SEK 95 billion ($10 billion) in AI infrastructure in Sweden. This marks one of the firm’s largest AI investments in Europe and strengthens its collaboration with the Swedish government, public authorities, academic institutions, and businesses.
This major investment targets a new large AI facility in Strängnäs. The facility will serve as a strategic infrastructure asset to bolster Sweden’s national AI strategy. As a part of this initiative, Brookfield has signed a land allocation agreement, doubling the data center capacity from 300MW to 750MW. This expansion will create more than 1,000 permanent jobs, in addition to 2,000 roles supporting the construction phase over the next decade and a half.
Sikander Rashid, head of Europe at Brookfield, expressed satisfaction with the expansion. “We are pleased to extend our partnership with Sweden and support their ambitions to become a leading AI hub in Europe. To compete in AI development and realize its economic productivity, investment in infrastructure is crucial. It goes beyond data centers, encompassing data transfer, chip storage, and energy generation.”
Earlier in the year, the firm announced a €20 billion infrastructure investment program in France. This includes a €10 billion commitment to build the first AI factory in the country, creating a 1GW capacity and establishing Europe’s largest AI infrastructure cluster.
Rashid sees immense opportunities in AI infrastructure. “To achieve the potential $10 trillion productivity gains from AI adoption, approximately $7 trillion investment in physical infrastructure will be required over the next decade. Infrastructure investors have a significant role through capital allocation into existing power and data center platforms, as well as emerging AI sectors.”
He further remarked on the strategic importance of investing in AI infrastructure, emphasizing the necessity of highly contracted assets, strong partners, and the potential for high returns. “AI technology is recognized as a tool for productivity enhancement, and its development can stimulate local economies.”
According to Rashid, the US and China pioneered this realization, but Europe is now emerging as a strong third contender. The Middle East and select Asia-Pacific markets are making rapid strides too.