Brookfield to Invest $10 Billion in AI Hub Development in Sweden
Brookfield Asset Management plans to invest up to 95 billion Swedish kronor ($9.9 billion) for the development of artificial intelligence infrastructure in Sweden, and the construction is expected to take 10 to 15 years.
The New York-based asset manager plans to acquire more land in Strangnas, which is about 55 miles west of Stockholm, to facilitate a 750-megawatt data center, effectively doubling its original plan.
According to Bloomberg, Brookfield's head of Europe, Sikander Rashid, said:
"Building AI hubs in Europe will ensure the continent can compete on a global scale, supporting continued innovation and providing necessary compute to both businesses and individuals."
Brookfield expects the project to create over 1,000 permanent jobs and around 2,000 temporary jobs during the construction phase.
Securing a sufficient power supply will be crucial for the project, given Sweden's existing electrification needs and capacity challenges. Rashid noted that progress is being made with the regional grid owner and national grid operator, which is normal for large-scale projects of this nature.
This investment marks one of the largest in AI infrastructure in Sweden, reflecting the government's AI strategy, according to Prime Minister Ulf Kristersson.
"I find it particularly fun that it is in my hometown," Kristersson added.
The development is part of a larger trend, with Brookfield announcing a €20 billion ($23 billion) plan to establish AI centers in France in February.
Sweden's AI infrastructure development has also garnered support from Nvidia Corp. and a group of companies controlled by the influential Wallenberg family. They plan to develop a supercomputer and AI technology center that will benefit involved businesses, such as defense company Saab AB.
The investment underscores the growing importance of AI infrastructure in Europe, with Brookfield's project expected to contribute significantly to the region's technological advancement.
As European countries strive to remain competitive in the global AI landscape, large-scale investments like Brookfield's will play a critical role in shaping the continent's AI capabilities.
In the long term, Brookfield's AI hub is poised to become a cornerstone of Sweden's AI ecosystem, providing critical infrastructure for businesses and individuals alike.
With construction set to begin soon, the project's impact on the local economy and AI sector will be closely watched in the coming years.
