Brookfield Pushes Its Chips Further Into Data Infrastructure
Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) sees an enormous investment opportunity in data infrastructure. The digital economy is driving the need for more infrastructure to support surging data usage, which is on track to grow at a 30% annual clip through 2025. Overall, the company believes data infrastructure represents a 100-year investment opportunity.
That's leading the company to pour capital into expanding the world's data infrastructure. It recently unveiled one of its biggest splashes, partnering with chip giant Intel (NASDAQ: INTC) to help finance the construction of two semiconductor fabrication facilities in Arizona.
Brookfield Infrastructure's initial data investments have been to acquire critical backbone infrastructure supporting data usage, like cell towers, fiber optic networks, and data centers. The company leases capacity on this infrastructure to technology, telecom, and other customers under long-term contracts, enabling it to generate predictable cash flow to support its 3%-yielding dividend. It also invests in expanding its capacity by building additional towers, fiber capacity, and data centers to support growing data usage. Those investments help grow its cash flow, supporting its ability to continue increasing its dividend.
Source Fool.com
