Brookfield launches a cloud business backed by nuclear power

Private equity firm Brookfield (BN) is launching a cloud computing business as it expands into AI infrastructure. The move positions Brookfield as a challenger to hyperscale providers such as Amazon, Microsoft, and Google.

The new cloud venture is named Radiant. It is linked to a $10 billion AI infrastructure fund that grants priority leasing rights to data centers built under the fund. Brookfield said the business is aimed at governments and corporations seeking sovereign and locally stored data.

Brookfield is the majority owner of Westinghouse, a nuclear reactor developer. Westinghouse designs include the AP1000 reactor and the smaller AP300. These reactors are intended to provide carbon-free baseload power.

The firm said Radiant will manage compute clusters in-house. Global head of AI infrastructure Sikander Rashid said this approach avoids reliance on fragmented partners. Projects are already underway in France, Qatar, and Sweden.

Chipmaker Nvidia is providing investment and expertise for server setups. Nvidia has previously identified power availability as a major constraint for AI development, according to comments by its chief executive Jensen Huang.

Rising electricity demand from data centers has placed pressure on power grids, including PJM. Developers have turned to natural gas turbines for faster deployment while pursuing longer-term nuclear options.

Utilities have reported increased interest in nuclear power from large customers. Constellation Energy said on its most recent earnings call that customers are seeking nuclear generation and are familiar with pricing and contract terms.

As the 51 percent owner of Westinghouse, Brookfield is positioned to support long-lead nuclear development for future data center use. Westinghouse recently signed an $80 billion agreement with the U.S. government. The AP300 reactor, announced in 2023, is designed to share components and safety systems with the AP1000, with a design approval targeted for 2027.

Westinghouse faces competition abroad. France has a domestic nuclear industry led by EDF, while Sweden has held discussions with GE Vernova and Rolls-Royce.