Power solutions company Bloom Energy and global alternative asset manager Brookfield Asset Management have entered into a $5 billion strategic partnership to implement AI infrastructure.

This partnership marks the first phase of a joint AI infrastructure vision aimed at building factories capable of meeting the rising power and computing demands of artificial intelligence.

It is Brookfield’s first investment in its AI infrastructure strategy, which focuses on investing in large AI factories, computing infrastructure, power solutions, and strategic capital partnerships.

Under the partnership, Brookfield will invest up to $5 billion in deploying Bloom’s fuel cell technology. Both companies are collaborating to design and deliver AI factories worldwide. This includes a site in Europe that will be announced by the end of 2025.

KR Sridhar, Founder, Chairman, and CEO at Bloom Energy, said unlike traditional factories, AI factories require considerable power, quick deployment, and real-time load responsiveness, which legacy grids cannot support. “The lean AI factory is achieved with power, infrastructure, and compute designed in sync from day one. That principle guides our collaboration with Brookfield to reimagine the data center of the future.”

Sikander Rashid, Global Head of AI Infrastructure at Brookfield, said, “Behind-the-meter power solutions are essential to closing the grid gap for AI factories.”  Bloom’s fuel cell technology will help design and construct modern AI factories.

Foundational models and generative AI are expected to drive ongoing power demand over the next decade. Experts say that the U.S. power demand is projected to surpass 100 GW by 2035. Fuel cells are a critical solution for addressing these challenges.

Bloom Energy has deployed hundreds of MW of its fuel cell technology for data centers and has partnered with companies such as American Electric Power, Equinix, and Oracle to provide energy to critical digital infrastructure globally.

Bloom has earlier entered into a partnership with Oracle to power its AI data centers.

India is also witnessing a growing demand for power from data centers. Project developers are increasingly recognizing battery energy storage systems as a vital component of renewable energy projects in the coming years to meet the demand.