Brookfield Asset Management has announced 95 billion Swedish kronor (approximately $9.9 billion) to establish a cutting-edge data centre dedicated to AI workloads in Sweden.
The facility will be located in Strängnäs, an estimated 80 kilometers west of Stockholm, on a parcel of land spanning about 3.77 million square feet. The project is also expected to boost Europe’s AI infrastructure as well as its competitiveness in the AI race.
Why Brookfield settled for Sweden
Construction is expected to unfold over the next 10 to 15 years, creating around 2,000 jobs throughout the build phase and more than 1,000 permanent positions once the centre becomes fully operational.
According to a Reuters article, Brookfield already owns the property in question and is now negotiating a land-allocation agreement with the local municipality. If all the conditions of the AI hub are met, the municipality will transfer the land to Brookfield for 525 million kronor. If not, its ownership will revert to the municipality.
There are several factors that were considered to settle for Sweden as the preferred destination for large-scale data infrastructure. Firstly, the country boasts a stable and plentiful electricity supply, which is essential for powering energy-intensive AI computations, and extensive high-speed connectivity across both urban and regional centers.
“To compete in the development of AI and realize its economic productivity, it is important to invest at scale in the infrastructure underpinning this technology.”
– Sikander Rashid, head of Europe at BAM.
Additionally, recent European regulations demand that any sensitive data that is generated within the EU must remain hosted on European soil, boosting demand for local data center capacity.
Other global tech giants like Microsoft, Meta, and Alphabet have also chosen Sweden for major projects, attracted by its reliable infrastructure and strong links to nearby academic hubs in Eskilstuna, Västerås, Linköping, Uppsala, and Stockholm.
Prime Minister Ulf Kristersson has hailed Brookfield following its announcement, stating in a post on the X platform that this project would be among Europe’s top and largest AI-focused data centers and bring massive economic benefits to the region.
Europe is taking a significant share of the AI infrastructure cake
Brookfield’s investment in Sweden is part of a wider strategy by asset managers and tech firms to secure one of the main anchors for the AI revolution. Earlier this year, the firm announced plans to deploy €20 billion for AI infrastructure projects across Europe. The initiatives would be spearheaded by a proposed “AI factory” in France.
Similarly, chip making giant Nvidia has also committed to supply its most advanced AI data center platforms to a consortium of Swedish enterprises, further consolidating the ecosystem around Strängnäs site.
In the meantime, Microsoft has announced an estimated $4.75 billion for cloud and AI expansion in Italy, while Amazon has pledged almost €18 billion to extend its logistics and cloud networks in Germany, plus an additional €15.7 billion for cloud services in Spain through 2040.
Elsewhere, Meta has also announced a twenty-year energy agreement to fuel its AI infrastructure and data centers as AI demand continues to increase.
These increasing investments highlight the high-stakes competition among governments and corporations to build the capacity required for next-generation AI applications, from large language models to real-time analytics.
By anchoring its new facility in Strängnäs, Brookfield will not only leverage the country’s favorable environment but will also showcase confidence in Europe’s role as a significant contributor to the global AI infrastructure landscape.
The initiative also comes as the data center market is booming not only in Europe but across the globe, spurred by rising demand for AI services.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
