Brookfield’s cloud business signals a shift beyond hyperscalers

The cloud market has long been shaped by a familiar group of hyperscalers. What is changing now is not just who runs cloud platforms, but who is starting to build the infrastructure behind them.

Recent reporting that Brookfield Asset Management is preparing to launch a cloud business points to a broader shift in how large enterprises may source compute in the years ahead. The move reflects growing pressure on traditional cloud providers as AI workloads drive up demand for power, chips, and physical data-centre capacity.

Brookfield’s plan, as described by people familiar with the matter, centres on leasing high-performance chips to AI developers and enterprises, supported by its global portfolio of data centres and energy assets. Rather than competing head-on with hyperscalers on software platforms, the approach focuses on owning and financing the physical layer that AI now depends on.

This is not an isolated move. It signals how non-traditional players — particularly asset managers, real estate firms, and infrastructure investors — are positioning themselves as core suppliers to the cloud economy.

Cloud demand is shifting from software to scarcity

For many large enterprises, cloud strategy is no longer just about choosing between AWS, Microsoft Azure, or Google Cloud. It is increasingly shaped by access to scarce resources: advanced chips, stable power, and space to run large-scale AI workloads.

AI training and inference require far more compute than traditional enterprise applications. At the same time, chip supply remains tight, energy costs are rising, and new data-centre builds face regulatory and grid constraints in many regions. These pressures are exposing a gap between cloud demand and physical capacity.

That gap creates room for companies like Brookfield, which already operate at the intersection of capital, real estate, and energy. By offering chip leasing and dedicated infrastructure, they can serve enterprises that want cloud-like scale without being fully dependent on a single hyperscaler.

This introduces a new option: sourcing compute as a financial and infrastructure decision, not just a software one.

A different kind of cloud supplier

Brookfield’s entry does not look like a traditional cloud launch. There is no developer platform, marketplace, or suite of managed services. Instead, the focus is on long-term contracts, predictable returns, and physical assets that can support AI workloads over many years.

This model aligns more closely with how large enterprises already think about factories, logistics hubs, or energy supply. It also mirrors how some hyperscalers themselves operate behind the scenes — investing heavily in land, power, and custom hardware to secure long-term capacity.

The difference is that Brookfield is offering that infrastructure directly to customers and developers, rather than bundling it inside a full cloud stack.

For some enterprises, especially those running large, steady AI workloads, this could reduce exposure to cloud pricing volatility or capacity limits. For others, it may serve as a complement to existing public cloud deployments rather than a replacement.

Pressure on hyperscalers is building quietly

Hyperscalers are not losing their dominant role. They continue to control the software layers, developer ecosystems, and enterprise relationships that define the cloud market. But their expansion is becoming more capital-intensive and constrained by physical limits.

Power availability has emerged as a bottleneck in several major data-centre regions. Grid upgrades take time, and energy costs vary widely by location. At the same time, demand for AI-grade chips has forced cloud providers to prioritise certain customers and workloads.

These conditions make partnerships with infrastructure owners more attractive — and make independent infrastructure providers more relevant.

Brookfield’s move highlights how cloud growth is pulling in players that were not previously part of the conversation. Asset managers and real estate firms bring scale, financing expertise, and a tolerance for long payback periods that align with the needs of AI infrastructure.

What this means

The rise of infrastructure-focused cloud providers adds complexity, but also flexibility.

Cloud decisions may increasingly involve finance teams, real estate planners, and energy specialists, alongside IT leaders. Questions around cost certainty, supply risk, and long-term capacity are becoming as important as performance benchmarks or service features.

The cloud market is not fragmenting, but it is layering. Software platforms remain central, while the physical foundations of cloud computing are becoming a competitive arena of their own.

Brookfield’s planned cloud business is a sign of that shift. It suggests that the future of cloud infrastructure will be shaped not only by technology firms, but also by those who control capital, land, power, and hardware at scale.

See also: The hyperscalers’ building programmes: How enterprises are affected

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