Key Takeaways
- Brookfield Renewable Partners is a trusted company for ensuring reliable power for data centers, including those of Microsoft and Google.
- The company owns clean energy assets, including solar, wind, hydroelectric, battery, and nuclear power, and signs long-term power supply contracts to generate reliable cash flows.
- Brookfield Renewable Partners has deals in place to supply Google with 3 gigawatts of power and Microsoft with 10.5 gigawatts of power for their data centers.
- The company expects to make between $9 billion and $10 billion worth of capital investments over the next five years, driving funds from operations growth of 10% or more a year.
- Brookfield Renewable Partners’ investment in Westinghouse, a nuclear power company, is a hidden gem with potential for growth due to increasing demand for electricity from AI data centers.
Introduction to Brookfield Renewable Partners
Brookfield Renewable Partners is a company that owns clean energy assets, including solar, wind, hydroelectric, battery, and nuclear power. As the company’s website states, "We are a leading global renewable energy company with a diversified portfolio of renewable energy assets." The company signs long-term power supply contracts, generating reliable cash flows to support its hefty yield. According to the article, "At the end of the third quarter of 2025, the average contract length was 13 years. Roughly 70% of its contracts were indexed for inflation. And 75% of Brookfield Renewable Partners’ revenue was derived from developed countries." This stability and reliability make it an attractive investment opportunity for income-focused investors.
The AI Opportunity
The article highlights the growing demand for reliable power from AI giants, including Microsoft and Google. As the article states, "You can’t build a data center without ensuring it has reliable power. Without electricity, artificial intelligence simply doesn’t work." Brookfield Renewable Partners has capitalized on this opportunity by signing deals with these companies to supply them with power for their data centers. The company has deals in place to supply Google with 3 gigawatts of power and Microsoft with 10.5 gigawatts of power. These deals are expected to drive growth for the company, with Brookfield Renewable Partners expecting to make between $9 billion and $10 billion worth of capital investments over the next five years.
The Investment in Westinghouse
One of the most interesting aspects of Brookfield Renewable Partners is its investment in Westinghouse, a nuclear power company. As the article notes, "Nuclear power is going through a renaissance." Westinghouse has a new $80 billion deal with the U.S. government to build nuclear reactors, which hints at potential growth for the company. According to the article, "Roughly 85% of Westinghouse’s revenues come from services, but a new $80 billion deal with the U.S. government to build nuclear reactors hints that there could be more to this business than meets the eye, as power-hungry AI data centers push demand for electricity higher." This investment is a hidden gem for Brookfield Renewable Partners, with potential for growth due to increasing demand for electricity from AI data centers.
Investment Opportunity
Brookfield Renewable Partners offers a unique investment opportunity, with a high yield of 5.2% and potential for growth. As the article states, "This spending is expected to drive funds from operations growth of 10% or more a year. That, in turn, will support the long-term goal of increasing the distribution by 5% to 9% a year." The company’s stability and reliability, combined with its growth potential, make it an attractive investment opportunity for income-focused investors. For investors who prefer to avoid partnerships, there is also a corporate version of the business that trades as Brookfield Renewable Corporation, although it has a lower yield of 3.7%.
Conclusion
In conclusion, Brookfield Renewable Partners is a trusted company for ensuring reliable power for data centers, including those of Microsoft and Google. The company’s investment in Westinghouse is a hidden gem with potential for growth due to increasing demand for electricity from AI data centers. With a high yield and potential for growth, Brookfield Renewable Partners offers a unique investment opportunity for income-focused investors. As Reuben Gregg Brewer notes, "If you’ve never heard of Brookfield Renewable Partners, now could be the time to dig into this high-yielder."
https://www.fool.com/investing/2026/01/28/the-best-artificial-intelligence-ai-data-center-pl/
