Brookfield Buys Minority Stake In Hyperscale Data Center Developer AREP

Brookfield Asset Management affiliates acquired a minority stake in real estate investment and data center development platform American Real Estate Partners, the companies announced. 

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Bisnow/Ethan Rothstein

The amount of the investment was not disclosed.

The deal, expected to close in the fourth quarter, brings investment giant Brookfield’s global scale together with Washington, D.C.-based AREP. The institutional fund manager is developing more than 32M SF of hyperscale data centers nationwide. 

AREP has deployed or committed more than $30B and acquired over 40M SF of Class-A real estate, specializing in data center, residential, industrial and office assets.

“We are in the early stages of a multi-decade buildout of physical infrastructure required for AI,” Ben Brown, co-president of Brookfield’s Real Estate Group, said in a statement. “AREP is a strong, synergistic partner with institutional quality data center development capabilities.”

AREP’s goals across the digital and power sectors align with Brookfield’s disciplined approach to integrated data center development, Brown said. 

AREP closed a fund targeting investments in data center and suburban residential projects in February 2025. With $309M in equity commitments, that was AREP’s largest fund to date. 

“Over the past several years, we have built AREP into a differentiated real estate investment and data center development platform, and we are excited to welcome Brookfield as a partner,” AREP President Brian Katz said in a statement. 

New York-based Brookfield Asset Management, a behemoth with more than $1T of assets under management, has been recalibrating its portfolio by shifting away from office space and pushing into data centers.

Its parent company, Brookfield Corp., is backing Csquare Inc., a hyperscaler with 389 megawatts' worth of power that missed its $1.35B initial public offering target by $300M in July. The IPO would leave Brookfield with a 67% stake in the company.

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