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Brookfield Launches $10B Fund to Build Out AI Infrastructure
Brookfield’s new $10B fund targets AI infrastructure with backing from Nvidia and Kuwait.
Jordan B.
November 20, 2025
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Good morning. Brookfield Asset Management is raising a $10B fund to invest in the physical infrastructure powering AI. With backing from Nvidia and Kuwait’s sovereign wealth fund, the firm is positioning itself at the center of AI’s real estate and energy needs.
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🎙️This Week on No Cap: Winston Fisher joins to talk about turning a 100-year-old firm into the creative force behind AREA15.
Market Snapshot
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AI Infrastructure
Brookfield Launches $10B Fund to Build Out AI Infrastructure
While the world obsesses over AI software, Brookfield is quietly raising $10B to own the real estate beneath it.
Backing AI growth: Brookfield Asset Management is launching a $10B AI infrastructure fund—half already raised from Nvidia, the Kuwait Investment Authority (KIA), and its own balance sheet. With co-investments and debt, Brookfield aims to scale the effort to $100 billion in AI-related infrastructure.
Where the money’s going: The fund will target hard assets critical to AI’s growth, including data centers, power infrastructure, and chip manufacturing. Most capital will go toward ground-up development on raw land—a long-term, foundational strategy. Initial moves include a $5B partnership with Bloom Energy and government-backed AI projects in France and Sweden.
Leading the buildout: With over $1T in AUM, Brookfield is the world’s largest infrastructure investor, with $100B already committed to digital infrastructure. It estimates $7T will be needed for AI infrastructure over the next decade. The new fund follows the model of its successful $20B energy-transition fund launched in 2022.
Big backers: Nvidia adds star power and strategic backing, continuing its AI infrastructure push through OpenAI and Anthropic. KIA’s support signals rising sovereign wealth interest. The news lands amid AI bubble worries and ahead of Nvidia’s closely watched earnings.
➥ THE TAKEAWAY
Powering the future: Brookfield isn’t just betting on AI; it’s betting on the physical world behind it. As others chase apps and models, Brookfield is laying the pipes, servers, and power lines needed to fuel the future.
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✍️ Editor’s Picks
From landlord to investor: Trade landlord duties for passive income and tax deferral through a 721 exchange into an UPREIT. (Sponsored)
Tax relief tradeoff: NYC landlords are embracing Article XI tax breaks to cut costs, sacrificing profits for long-term affordability and regulatory oversight.
IPO timeout: Bill Ackman is urging a pause on Fannie and Freddie’s IPO, proposing a simpler stock exchange listing while keeping government control intact
Tax smart returns: Invest in recession-resilient mobile home parks with 15–17% IRR, monthly cash flow, and 2025 bonus depreciation benefits. (Sponsored)
Confidence lag: Builder sentiment stayed low in November as economic uncertainty and buyer hesitation persisted despite lower mortgage rates.
Sector shuffle: Health care REITs took the top spot in Q3, while office shifted to overweight for the first time since 2020.
Renovation rebound: U.S. construction spending unexpectedly rose 0.2% in August, driven by home renovations.
REIT pressure: Short interest in U.S. equity REITs ticked up slightly to 4.3% in October, with hotel and office REITs seeing the largest increases.
Alternative entry: Artisan Partners is making its long-anticipated move into real estate with the acquisition of Grandview Property Partners.
STEM surge: Austin, Seattle, and Raleigh top the 2025 STEM job growth rankings, driven by innovation, affordability, and top-tier talent.
Sales comeback: The housing market is poised for a rebound in 2026, with existing home sales expected to jump 14%.
🏘️ MULTIFAMILY
Renting redefined: Rentership has surged by over 10M households since 2000, signaling a long-term shift in American housing.
Cost crunch: Affordable housing operators face rising costs outpacing rent growth, threatening the sector’s financial viability.
Lending limits: Fannie Mae and Freddie Mac are expected to hit their $73B multifamily lending caps in 2025 as they ramp up aggressive, innovative lending.
Tallest tower: Pearl Properties secured $173M to build Philadelphia’s tallest apartment tower, a 45-story luxury project set for completion in 2028.
AI tailwind: San Francisco apartment demand is surging, pushing vacancy to an 11-year low of 4.5%.
Student shift: Lincoln Property Co. has acquired Capstone Development Partners, expanding its presence in student housing.
🏭 Industrial
Landfill logistics: Creation and PGIM are transforming a former Dallas dump into a 600,000 SF industrial hub.
Storage loophole: DECA landed $45M to build San Francisco’s last approved self-storage facility, exploiting a now-closed zoning gap.
Server state: Google is investing $40B in Texas to build out AI and cloud infrastructure, anchoring three new data centers.
Golden grants: California is granting $100M in tax credits to boost manufacturing, spurring $370M in investment and 2,700+ new jobs.
🏬 RETAIL
Driving divestment: Topgolf Callaway is selling a 60% stake in its driving range business to Leonard Green & Partners for $1.1B.
Retail targeting: Retailers like Chipotle use data-driven analysis to find new locations that grow revenue without cannibalizing existing stores.
Earnings dip: Home Depot lowered its 2025 outlook as cautious consumers delay home improvement projects.
Tech playground: Meta’s new West Hollywood store blends play and tech to drive hands-on sales of smart glasses and VR gear.
🏢 OFFICE
Growth gap: Office leasing could rebound as companies realize their downsized spaces no longer fit a larger post-pandemic workforce.
Bottom line: BXP’s CEO says the office market has bottomed, but oversupply means some buildings will face demolition while demand concentrates in top-tier spaces.
Coworking campus: StartupHQ has acquired its third historic building on San Francisco’s Second Street in a $13.9M deed-in-lieu deal.
Asset upgrade: Highwoods Properties is set to acquire the $223M 6Hundred office tower in Charlotte, marking its largest post-pandemic office deal.
Tower trouble: Suffolk Construction has filed to force the owner of San Jose’s 23-story Fay tower into bankruptcy.
Neighborhood boost: BlueAlpha Capital and CHC Development acquired the 53,000 SF Mercado Building near Fort Worth’s Stockyards.
Buyer hesitation: Medical outpatient building sales are at a 10-year low despite record rents and strong loan performance.
🏨 HOSPITALITY
Budget reality: Hoteliers are bracing for rising 2026 costs, especially in labor, renovations, and food.
Brand boost: HKB secured $73.5M in refinancing after transforming a distressed hotel portfolio into upgraded, branded assets.
Noble buy: Noble Investment Group is acquiring 31 Sonesta Simply Suites hotels from Service Properties Trust.
📈 CHART OF THE DAY
High lease renewal rates—nearly 62%—are helping the Northeast and Mid-Atlantic maintain the nation’s tightest apartment occupancy, far outpacing the national average.
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