Brookfield sees big opportunity in powering India data centers

Article content

(Bloomberg) — Brookfield Asset Management Inc. says data centers in India represent a big opportunity for its renewables business, even as some investors worry the country lacks clear artificial intelligence-focused investment options. 

Article content

India’s large population will be massive consumers of global AI applications, which will require a vast build-out of data centers and clean power to keep them running, according to the New York-based investment giant.

Article content

Article content

“India is a very large-scale adopter,” said Nawal Saini, managing partner in Brookfield’s energy group. “As AI use cases become more clear and widespread, we have a 1.5 billion population to serve, creating business models and the infrastructure behind them.”

Article content

Article content

Global investors have pulled back from Indian stocks this year, citing a lack of foundational AI models or advanced chip manufacturers that have driven technology stocks higher in most markets.

Article content

Article content

Brookfield, which runs about $1 trillion in assets, including $32 billion in India, takes a different view. The firm is the largest foreign investor in renewable energy in India, and one of the biggest commercial real estate landlords.

Article content

Saini notes an AI data center that requires one gigawatt of power may need seven to nine gigawatts of installed renewable capacity to ensure a smooth supply. 

Article content

“There lies the opportunity for players like us,” said Saini, who also heads Brookfield’s energy business in South Asia and the Middle East.

Article content

Last November, Brookfield launched a fund that aims to invest $100 billion in AI assets across every stage of the value chain, from energy and land to data centers and computing capability.

Article content

In India, Brookfield has investments in renewable firms including Clean Max Enviro Energy Solutions Ltd., Evren Technologies Inc., Avaada Energy Pvt and Leap Green Energy Pvt.

Article content

Article content

Clean Max currently derives about 42% of its revenue from supplying green power to AI customers and data centers, recently signing agreements with Meta Platforms Inc. and Iron Mountain Inc.  

Article content

AI data centers require continuous, around-the-clock electricity, so developers smooth out the intermittent nature of solar and wind generation through storage devices. 

Article content

Brookfield expects to deploy significant capital into battery storage. Demand in India is expected to reach 336.7 gigawatt hours by 2035, or about 115 times the current installations, according to Bloomberg New Energy Finance.

Article content

“Energy storage, complementing renewable energy by stabilizing the grid and distributing renewable power across the day is a big ask from customers,” Saini said in the interview from Mumbai, where he is based.

Article content

Brookfield is also looking beyond the grid to green ammonia, a fertilizer. The conflict in the Middle East has disrupted global supply chains, exposing India’s vulnerability to imported natural gas and urea. 

Article content

Saini said the recent revival in domestic green ammonia contracts is providing a major boost to the sector. Green ammonia would reduce India’s fertilizer import bill by replacing urea, while also positioning the country to eventually export green molecules.

Article content

Brookfield’s India renewable energy portfolio includes more than 45 gigawatts of operating and planned assets.

Article content