Brookfield Asset Management plans to develop data centers in Canary Wharf, London's financial district, as part of an aggressive push into AI infrastructure. The announcement signals a shift for one of the world's most recognizable office hubs, bringing high-density digital infrastructure into a market better known for banking and finance.
AI infrastructure becomes Brookfield's top priority
Speaking with CNBC on Thursday, Brookfield CEO Connor Teskey said AI infrastructure and the energy systems that support it represent the single largest investment theme at the firm today, bar none.
"We think there is a huge opportunity for AI in the U.K. and Europe because it is that middle ground between the United States and China," Teskey said. He noted that the absence of a home-grown hyperscaler in the U.K. means government-led initiatives will likely shape the buildout, creating a different dynamic than the U.S. market.
Brookfield already holds a multi-gigawatt portfolio of data centers globally, with a growing pipeline of projects under construction and in development. The firm launched a dedicated AI infrastructure fund last November, anchored by Nvidia, and has signed AI partnerships with governments in France and Sweden.
Canary Wharf moves beyond office space
Brookfield co-owns and manages Canary Wharf through the Canary Wharf Group, alongside the Qatar Investment Authority. Teskey dismissed concerns about an AI data center bubble, arguing that long-term contracts with strong counterparties reduce risk.
"If you build data centers against long-term contracts with the best counterparties in the world, we think there's more to be done," he said. "We're going to bring data centers here to Canary Wharf. They're going in everywhere."
Three trends reshaping capital allocation
Teskey identified soaring energy demand, deeper digitalization, and the rewiring of global supply chains as the forces driving an "immense need" for capital. The combination, he said, points to a productivity step up that makes current investments attractive, despite pockets of froth in the market.
Why this matters for real estate and construction
The Canary Wharf project is a concrete example of how demand for AI infrastructure is reshaping physical real estate. Developers and construction firms will need to adapt to repurposing existing commercial districts into data center hubs, a trend that requires specialized builds, upgraded power capacity, and new approaches to retrofitting. This intersection of digital infrastructure and physical development is explored in greater depth on the AI for Real Estate & Construction resource page.
Your membership also unlocks:
