French AI Investment Surges to $85B with Brookfield's $20B Commitment

Brookfield's Significant AI Investment in France

Brookfield, a Canadian investment company, has announced plans to allocate €20 billion (approximately $20.7 billion) to artificial intelligence initiatives within France by the year 2030. This information was initially reported by La Tribune Dimanche and subsequently verified by the AFP news agency.

A substantial portion of this investment will be directed towards the development of AI-centric data centers. This commitment arrives amidst growing global attention to AI development and deployment.

Data Center Development in Cambrai

Approximately €15 billion of Brookfield’s total investment is earmarked for a large-scale data center located in Cambrai, situated in northern France. This facility is projected to possess a power capacity reaching up to one gigawatt.

The remaining funds will be utilized for the creation of new infrastructure projects. These include the development of additional electricity generation capabilities to support the energy demands of these facilities.

International Collaboration and Investment

This announcement follows a recent joint venture between France and the United Arab Emirates. They revealed plans for an AI campus project accompanied by a significant investment of up to €50 billion ($52 billion).

Similar to the Brookfield project, the majority of this funding will be allocated to a data center with a potential capacity of one gigawatt.

Catalysts for Investment

Two primary factors are driving these substantial investment projects. The unveiling of the Stargate Project on January 21st is a key element.

The Stargate Project, a $500 billion initiative involving OpenAI, SoftBank, MGX, and other partners, aims to construct multiple data centers specifically for AI applications within the United States.

While the precise contribution of each investor to the Stargate Project remains unclear, its announcement, coupled with Mario Draghi’s recent report on European competitiveness, prompted a reassessment among European policymakers.

France's Energy Advantage

Furthermore, France benefits from a unique energy profile. Around 65% of its electricity is generated from nuclear power, with an additional 25% coming from renewable sources.

France currently generates a surplus of electricity. This makes it an increasingly appealing location for tech companies seeking to minimize their carbon footprint and secure sufficient power capacity for their energy-intensive data centers.

Additional Investments from French Enterprises

In addition to the major announcements, Bpifrance, the French national investment bank, revealed plans for up to €10 billion ($10.3 billion) in investment within France’s AI ecosystem. This funding will not be directed towards data center construction; instead, Bpifrance intends to support emerging AI startups and assume limited partner roles in venture capital firms specializing in AI investments.

Currently, Bpifrance holds shares in prominent companies like Mistral, H, and Poolside.

Furthermore, Iliad, the telecommunications firm established by French entrepreneur Xavier Niel, is dedicating €3 billion ($3.1 billion) to AI investments, facilitated by financial collaborators including Infravia. Approximately €2.5 billion ($2.6 billion) of this sum will be allocated to the development of new data centers specifically designed for AI, boasting “hundreds of megawatts of capacity.”

Scaleway, a French cloud computing provider and a subsidiary of Iliad, is expected to make this increased computing power accessible to users. Several European AI firms, including Mistral, H, and Photoroom, have already leveraged Scaleway’s infrastructure for AI model training.

(Notably, Xavier Niel is also an investor in both Mistral and H.)

Considering all disclosed commitments, France is poised to attract €83 billion ($85 billion) in AI-related investments over the next several years, with a primary focus on data centers and infrastructural development. Further announcements are anticipated at the AI Action Summit.

Explore our complete reporting on the Artificial Intelligence Action Summit held in Paris.