Brookfield and Bloom Energy Expanded Their AI Power Partnership to $25 Billion. Here's What Investors Need to Know.

For the second time this year, one of Bloom Energy’s (NYSE:BE) strategic partners has significantly expanded its partnership less than a year after forming the initial collaboration. This time, it’s Brookfield Asset Management (NYSE:BAM). The global alternative asset manager is expanding its AI infrastructure partnership to $25 billion, a five-fold increase since forming the initial partnership last October. That follows Oracle’s (NYSE:ORCL) decision to significantly expand its strategic partnership after Bloom Energy delivered a fully operational fuel system to the cloud giant more than a month ahead of the anticipated deployment schedule.

Here’s what investors need to know about this expanded partnership.

Image source: The Motley Fool.

Quintupling its investment

Brookfield sees a massive opportunity to invest in AI infrastructure. The global alternative investment firm estimates that total spending on AI-related infrastructure will exceed $1 trillion this decade and $7 trillion over the next 10 years. The company wants to capitalize on this once-in-a-generation opportunity to build the digital infrastructure backbone of the future. That led it to launch the inaugural Brookfield AI Infrastructure Fund late last year, which aims to acquire up to $100 billion of AI infrastructure assets.

One of Brookfield’s first seed investments in that fund was its initial $5 billion partnership with Bloom Energy. As part of that partnership, Brookfield would deploy up to 1 GW of Bloom Energy’s advanced fuel cells to power data centers and AI factories (specialized AI data centers). The two companies are also collaborating on the design and delivery of AI factories.

Brookfield is now boosting its investment commitment to $25 billion due to strong, sustained demand from hyperscalers and AI infrastructure developers for fast, reliable, and community-friendly power. The expanded partnership brings together Brookfield’s leadership in developing AI infrastructure, access to capital, and operating scale with Bloom’s rapidly deployable on-site power solution. The companies believe this partnership will help them advance a new model for AI factory development that integrates power, compute, data center infrastructure, and capital.

The standard for on-site power

Bloom Energy founder and CEO KR Sridhar believes the company is “ushering in the era of digital power for the digital age” as it’s “rapidly becoming the standard and 'go-to choice' for on-site power.” The expanded partnerships with Brookfield and Oracle show the truth behind that bold statement.

Oracle selected Bloom Energy to deploy its fuel cell technology at selects data centers last year because these fast-to-deploy power solutions could meet the high demands of AI workloads. Bloom delivered its first system in 55 days, well ahead of the 90-day target. That convinced Oracle to expand its agreement to acquire up to 2.8 GW of Bloom’s fuel cell systems, including the 1.2 GW it has already contracted. Brookfield and its clients are also seeing the benefits of deploying Bloom’s fuel cells to power data centers. The rapid deployment is huge, as securing and building power infrastructure has proven to be a major bottleneck in slowing AI data center development.

The growing popularity of Bloom’s fuel cell systems is powering rapid growth for the hydrogen company. Bloom’s revenue rocketed 130% in the first quarter to $750 million, while its operating income surged $91.3 million to $72.2 million. Bloom currently expects to book between $3.4 billion and $3.8 billion of revenue this year, up 80% from last year (an acceleration from the 60% growth it initially expected). With Brookfield now following Oracle in significantly expanding its order, Bloom’s revenue should continue surging.

Bloom might not be as expensive as it looks

Bloom’s accelerating revenue and expanding strategic partnerships have sent its stock soaring by more than 1,100% over the past year. As a result, the fuel cell company trades at over 30 times sales and more than 135 times forward earnings. While Bloom is growing exceptionally fast, that’s a hefty premium. However, the expanded Brookfield deal alone is now worth nearly a third of Bloom’s entire market cap (recently $83 billion). With the potential for more large-scale partnerships in the future, Bloom might not be as expensive as it seems. It's becoming the go-to stock to play the AI power boom.

Matt DiLallo has positions in Brookfield Asset Management and has the following options: short August 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.