By Amy Legate-Wolfe at The Motley Fool Canada
One trillion dollars changes the conversation. And that conversation is looking more likely as major tech firms look to build out data centres across Canada. From Google to Microsoft, major tech giants are scaling up to meet the insatiable computing needs. In fact, Google’s data centre buildout alone could top US$1 trillion.
Data centres used to sound like a niche real estate story. Now they sit at the centre of artificial intelligence (AI), cloud computing, power demand, and national competitiveness. Every new AI model needs servers. Every server needs power, cooling, fibre, land, and long-term capital. That makes the data-centre buildout one of the biggest infrastructure themes of the decade.
For Canadian investors, Brookfield Infrastructure Partners (TSX:BIP.UN) looks like one of the clearest ways to invest in it.
BIP
Brookfield Infrastructure is not a pure data-centre stock, yet that’s a strength. It owns and operates infrastructure across utilities, transport, midstream, and data. Think electricity transmission, pipelines, rail, toll roads, ports, telecom towers, fibre, semiconductor foundries, and data centres. These are the assets that keep economies running. Increasingly, they also keep AI running.
The data-centre boom has moved from hype to hard spending. Brookfield Infrastructure ended the first quarter of 2026 with a record capital backlog of about US$9.6 billion. The data segment made up about US$7.3 billion of that backlog. That’s the number investors should notice. It shows Brookfield isn’t just talking about AI infrastructure, but already has billions of dollars of projects lined up.
The latest quarter backed up the growth story. In Q1 2026, funds from operations came in at US$709 million, up 10% from last year. FFO per unit reached US$0.90. The data segment stood out, with FFO up 46% from the prior year. That growth came from a U.S. bulk fibre acquisition, organic growth in data storage businesses, and more than 200 megawatts of data centres moving into earnings over the last year.
Looking ahead
The company’s current platform also has scale. Brookfield Infrastructure has more than 150 data centres, about 2.4 gigawatts of contracted capacity, and development potential above 3.6 gigawatts. Hyperscale customers want reliable partners that can build large, complicated projects. A small operator may struggle to fund that demand. Brookfield can bring capital, experience, and global relationships.
There’s also another angle. Data centres need power and lots of it. Brookfield Infrastructure has a US$5 billion framework with Bloom Energy to install up to one gigawatt of behind-the-meter power for data centres and AI factories. In Q1, it signed another US$430 million project under that framework, bringing committed capital spending to about US$1.6 billion. That gives Brookfield a role not only in data centres, but in solving one of their biggest bottlenecks.
The distribution adds appeal. Brookfield declared a quarterly distribution of US$0.455 per unit, up 6% from last year. That fits its long record of increasing payouts. Still, investors shouldn’t ignore the risks. Brookfield Infrastructure uses debt, and higher interest rates can pressure valuations and financing costs. Data-centre demand could also cool if AI spending slows or customers delay projects. Large infrastructure projects can run over budget, and Brookfield’s global reach brings currency and regulatory risk. The stock isn’t a guaranteed winner just because AI sounds exciting.
Bottom line
That said, the case remains strong. Brookfield Infrastructure gives investors exposure to the physical side of AI. It builds and owns the assets behind the headlines. That’s a better fit for many long-term investors than chasing whichever chip stock surged last week.
If the data-centre buildout really becomes a trillion-dollar opportunity, Brookfield doesn’t need to capture all of it. It only needs to keep landing sensible projects, funding them well, and turning them into cash flow, while keeping the balance sheet steady. So for investors looking at AI’s next chapter, BIP.UN looks like a top TSX stock set to build billions. For patient investors, that formula still looks powerful over time from my vantage point.
The post $1 Trillion Data Centre Buildout? Here’s the Top Stock Set to Build Billions appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet, Brookfield Infrastructure Partners, and Microsoft. The Motley Fool has a disclosure policy.
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