The Best Artificial Intelligence (AI) Data Center Play You've Never Heard of for 2026
The Best Artificial Intelligence (AI) Data Center Play You've Never Heard of for 2026
Reuben Gregg Brewer, The Motley FoolWed, January 28, 2026 at 5:42 AM UTC
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Key Points -
Brookfield Renewable Partners has deals with Microsoft and Google to provide clean energy for their data centers.
Brookfield Renewable Partners offers a lofty 5.2% yield with a goal of 5% to 9% annual distribution growth.
A 50% stake in nuclear power giant Westinghouse could add even more growth to the story.
10 stocks we like better than Brookfield Renewable Partners ›
You can't build a data center without ensuring it has reliable power. Without electricity, artificial intelligence simply doesn't work. That's why AI giants including Microsoft and Alphabet's Google are entrusting Brookfield Renewable Partners (NYSE: BEP) to help them build out their AI data centers.
Here's what you about this 5.2%-yielding AI data center play.
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A child playing with a solar panel.
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, hydroelectric, battery, and nuclear power. It's a one-stop shop for any company that's trying to use renewable power or zero-carbon power such as nuclear energy. Brookfield Renewable Partners signs long-term power supply contracts, generating reliable cash flows to support its hefty yield.
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 is a stable and reliable business that rewards income-focused investors very well.
The AI opportunity is expanding
The company has deals in place to supply Google with 3 gigawatts of power for data centers. The Microsoft deal is even bigger, encompassing 10.5 gigawatts. These deals are geared toward future developments. Overall, Brookfield Renewable Partners expects to make between $9 billion and $10 billion worth of capital investments over the next five years.
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. So this isn't just a high yield story; it's also a dividend growth story.
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The hidden gem is Westinghouse
What's most interesting about Brookfield Renewable Partners right now, however, is its investment in Westinghouse. Nuclear power is going through a renaissance. 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.
If you've never heard of Brookfield Renewable Partners, now could be the time to dig into this high-yielder. For investors who prefer to avoid partnerships, there's a corporate version of the business that trades as Brookfield Renewable Corporation (NYSE: BEPC). High demand among institutional investors for the shares, however, leave it with a lower 3.7% yield.
Should you buy stock in Brookfield Renewable Partners right now?
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Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in 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.
Source: “AOL Money”
