Microsoft and Google trust this company to ensure their data centers remain operational.
You can’t build a data center without making sure it has reliable power. Without electricity, artificial intelligence simply does not work. This is why AI giants, notably Microsoft And Alphabet‘Google entrusts us Brookfield Renewable Partners (BEP +1.91%) to help them develop their AI data centers.
Here’s what you need to know about this 5.2% yielding AI data center play.
Image source: Getty Images.
What does Brookfield Renewable Partners do?
Brookfield Renewable Partners owns clean energy assets. Its portfolio is globally diversified and includes solar, wind, hydro, battery and nuclear power. This is a one-stop shop for any business trying to use renewable energy or carbon-free energy like nuclear power. Brookfield Renewable Partners signs long-term power supply contracts, generating reliable cash flow to support its high performance.
At the end of the third quarter of 2025, the average contract duration was 13 years. About 70% of its contracts were indexed to inflation. And 75% of Brookfield Renewable Partners’ revenues came from developed countries. This is a stable and reliable business that rewards income-oriented investors very well.
The AI opportunity is growing
The company has agreements to provide Google with 3 gigawatts of data center power. The deal with Microsoft is even bigger, encompassing 10.5 gigawatts. These agreements are oriented towards future developments. Overall, Brookfield Renewable Partners expects to make between $9 billion and $10 billion in capital investments over the next five years.
Brookfield Renewable Partners
Today’s change
(1.91%) $0.54
Current price
$28.81
Key Data Points
Market capitalization
$8.8 billion
Daily scope
$28.27 -$29:15
52 week range
$19.29 -$32.72
Volume
673 KB
Average flight
749 KB
Gross margin
18.24%
Dividend yield
5.18%
These expenses are expected to generate funds from operations growth of 10% or more per year. This, in turn, will support the long-term goal of increasing the distribution by 5-9% per year. So it’s not just a story of high returns; it’s also a dividend growth story.
The hidden gem is Westinghouse
What’s most interesting about Brookfield Renewable Partners right now is its investment in Westinghouse. Nuclear energy is experiencing a renaissance. About 85% of Westinghouse’s revenue comes from services, but a new $80 billion deal with the U.S. government to build nuclear reactors suggests the business may have much more to offer than meets the eye as power-hungry AI data centers push electricity demand higher.
If you’ve never heard of Brookfield Renewable Partners, now might be a good time to look into this high-performing company. For investors who prefer to avoid partnerships, there is a corporate version of the company that trades under the name Brookfield Renewable Energy Company (BEPC +2.39%). However, the strong demand from institutional investors for these shares gives it a yield of less than 3.7%.
Reuben Gregg Brewer holds positions at Brookfield Renewable Partners. The Motley Fool holds positions and recommends Alphabet and Microsoft. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
