Brookfield Infrastructure Partners Q2 2026 Earnings Report

Brookfield Infrastructure Partners EPS Results

• Actual EPS: $0.89
• Consensus EPS: $0.16
• Beat/Miss: Beat by +$0.73
• One Year Ago EPS: $0.81

Brookfield Infrastructure Partners Revenue Results

• Actual Revenue: $6.48 billion
• Expected Revenue: $2.23 billion
• Beat/Miss: Beat by +$4.26 billion
• YoY Revenue Growth: +19.40%

Brookfield Infrastructure Partners Announcement Details

• Quarter: Q2 2026
• Date: 7/30/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, July 30, 2026
• Conference Call Time: 9:00AM ET

Brookfield Infrastructure Partners (NYSE:BIP) L.P. is a global owner and operator of essential infrastructure assets. The partnership’s portfolio includes businesses in utilities, transport, midstream energy, and data infrastructure, with assets that support the movement of people, goods, energy, and data.

Its utilities operations include electricity transmission and distribution, natural gas distribution, and water and wastewater systems. The transport business encompasses assets such as toll roads, rail, ports, and other transportation infrastructure. Brookfield Infrastructure also owns midstream energy infrastructure, including pipelines and natural gas processing and storage facilities, as well as data infrastructure such as data centers and fiber networks.

Brookfield Infrastructure serves customers and communities across North and South America, Europe, and the Asia-Pacific region. The partnership was established in 2008 and is managed by Brookfield Asset Management. Sam Pollock has served as Brookfield Infrastructure’s chief executive officer since 2015. Its publicly traded units are listed on the New York Stock Exchange under the symbol BIP.

Brookfield Infrastructure Partners Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Brookfield Infrastructure reported second-quarter FFO of $702 million, or $0.89 per unit, up 10% year over year and in line with its long-term growth target. Growth was supported by inflation-linked increases, stronger transport and midstream activity, and newly commissioned data projects.
• Positive Sentiment: The company generated nearly $1.2 billion from asset sales year to date, including the IPO of its U.S. colocation data center business, in which Brookfield retains a 64% stake. Management said public-market monetizations are expanding its exit options and helping fund new investments.
• Positive Sentiment: Brookfield said its AI infrastructure pipeline is expanding, including a planned 1.2-gigawatt Kentucky AI campus, a 200-megawatt South Korean sovereign-compute project, and a fivefold expansion of its Bloom Energy framework to $25 billion of potential CapEx. However, significant equity deployment is expected to be back-end loaded over the next several years.
• Neutral Sentiment: Management expects to complete the corporate simplification combining BIP and BIPC into a single publicly traded corporation in the fourth quarter of 2026, following shareholder meetings on October 14. The company expects improved liquidity and broader investor access without meaningful costs to the business.
• Negative Sentiment: Executives acknowledged growing community and regulatory resistance to data center development, particularly in the U.S., with concerns about electricity rates, water usage, and noise. They said Brookfield is prioritizing locations with local support and projects using measures such as closed-loop cooling and dedicated power generation.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the Brookfield Infrastructure Partners LP Second Quarter 2026 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Krant, Chief Financial Officer. Please go ahead.

[David Krant, CFO at Brookfield Infrastructure Partners]

Thank you, Crystal, good morning, everyone. Welcome to Brookfield Infrastructure Partners Second Quarter 2026 Earnings Conference Call. As introduced, my name is David Krant, I'm the Chief Financial Officer of Brookfield Infrastructure. I'm joined today by our Chief Executive Officer, Sam Pollock, our Chief Operating Officer, Ben Vaughan, as well as Dave Joynt, a Managing Partner on our investments team, and Lief Williams, a Managing Director focused on AI infrastructure investments. I'll begin the call today with a discussion of our second quarter 2026 financial and operating results, followed by an update on our asset sale initiatives. I'll then turn the call over to Sam, who will discuss our new investments and provide an outlook for the business. At this time, I would like to remind you that in our remarks today, we may make forward-looking statements.

[David Krant, CFO at Brookfield Infrastructure Partners]

These statements are subject to known and unknown risks, future results may differ materially. For further information on known risk factors, I would encourage you all to review our latest annual report on Form 20-F, which is available on our website. We're pleased to report that in addition to Brookfield Infrastructure delivering strong financial results this quarter, we have also made meaningful progress across our strategic initiatives. Beginning with our financial and operating results. In the second quarter, we generated FFO of $702 million, or $0.89 per unit. This represents a 10% increase compared to the prior year on both a quarterly and year-to-date basis, which is in line with our long-term growth target.

[David Krant, CFO at Brookfield Infrastructure Partners]

The increase reflects organic growth within our six to 9% target range, driven by inflation-linked rate increases in our utility segment, strong activity levels across our transport and midstream businesses, and the commissioning of new capital projects in our data segment. Results also benefited from the strong cash contribution from new investments, which are generating returns meaningfully above the yield on our completed asset sales. I'll now go through our results by segment in more detail. Starting with our utility segment, we generated FFO of $196 million, an increase of 5% versus the prior year. The increase was driven by inflation indexation, the contribution from capital commissioned into our rate base, and the acquisition of a South Korean industrial gas business completed last year.

[David Krant, CFO at Brookfield Infrastructure Partners]

This growth was partially offset by foregone earnings from asset sales, including the largest of four concessions within our Brazilian electricity transmission operation and our Mexican regulated natural gas transmission business, both of which contributed results in the comparable period. Moving on to our transport segment, FFO was $311 million, representing a 7% increase over the prior year after normalizing for capital recycling activity. The increase was driven by broad-based strength across our operations, with volumes across our rail, port, and toll road operations increasing between 3% and 7% year-over-year. In addition, results benefited from the contribution from our North American rail car leasing platform, which closed on January 1st.

[David Krant, CFO at Brookfield Infrastructure Partners]

These contributions were partially offset by the foregone earnings associated with the sale of a 49% interest in our Australian export terminal, the sale of our Australian container terminal business, and a partial sale of our U.K. port operation, all of which closed last year. Our midstream segment generated FFO of $183 million, up 17% compared to the same period last year. The increase reflected strong organic growth across the portfolio, particularly at our Canadian diversified midstream business, which benefited from strong asset utilization as well as elevated commodity pricing. Results also benefited from the contribution of our recently acquired U.S. refined products pipeline system, which more than offset the lost earnings with the sale of our U.S. gas pipeline last year. Lastly, FFO from our data segment was $154 million, representing an increase of 36% compared to the prior year.

[David Krant, CFO at Brookfield Infrastructure Partners]

The increase was driven by the contribution from our U.S. bulk fiber network acquired last September, as well as income generated by our data center developers and the initial contribution from our partnership with Intel to construct semiconductor foundries in Arizona. Turning to our balance sheet and capital recycling program. Public markets have been an increasingly effective exit channel for us. Far in 2026, we have generated meaningful proceeds from public market transactions, reflecting both the quality of the businesses we have built and the depth of investor demand for scaled, high-quality infrastructure platforms. IPOs and follow-on public market monetizations provide us with an attractive path to crystallize value, broaden the buyer universe, and retain flexibility to participate in future upside. They also give us optionality alongside private sale alternatives, supporting value maximization across multiple potential exit paths.

[David Krant, CFO at Brookfield Infrastructure Partners]

The most recent example was the IPO of our U.S. colocation data center operation on the New York Stock Exchange. Since our initial investment in 2018, we have transformed the business into a scaled platform with large presence across major U.S. markets, serving more than 1,700 customers. A key value driver in this transformation was the acquisition of over 40 sites through a bankruptcy process Which scaled the platform, optimized the portfolio, and accelerated its growth. During our ownership, we have increased EBITDA by more than four times and expanded capacity from 115 MW to approximately 390 MW. The IPO represents the next step in our value creation plan. The transaction generated gross proceeds of approximately $1.2 billion at an attractive valuation.

[David Krant, CFO at Brookfield Infrastructure Partners]

Brookfield retains a 64% ownership interest in the business and will continue to participate in future value creation, including the potential to grow the platform to approximately 1 GW of capacity through equipment optimization and under-roof expansion. In the quarter, we also advanced monetizations across two listed businesses in India. At our Indian telecom tower portfolio, we sold a 7% interest through the capital markets. Similarly, at our Indian gas transmission operation, we completed several smaller sell downs to public market investors following our inaugural sale last year, exiting a further 14% of the business. Combined, these transactions generated nearly $100 million of proceeds net to BIP. Adding to our asset sale progress, we executed a second transaction under our established framework for monetizing de-risked and contracted container portfolios at our global intermodal logistics operations.

[David Krant, CFO at Brookfield Infrastructure Partners]

On July 1st, we completed a sale of a majority interest in a portfolio of contracted containers, generating approximately $60 million to BIP. Finally, at our North American railcar leasing platform, we generated approximately $20 million in proceeds at our share. These proceeds were primarily generated through our structured investment framework, which provides for the transfer of ownership to our partner over time. Together, these transactions further support our ability to self-fund growth while recycling capital at attractive valuations. So far in 2026, we have generated nearly $1.2 billion of proceeds from our asset sales, with several sale processes well underway that give us confidence in achieving our capital recycling objective for this year. That concludes my remarks this morning, and I will now turn the call over to Sam.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Thank you, David, and good morning, everyone. The first half of the year was active on both sides of our asset rotation strategy. In addition to the asset sales David just discussed, we have secured or deployed over $800 million into new investments. This includes the acquisition of Clarus, New Zealand's leading gas infrastructure utility, with closing expected in the coming weeks, and an increased equity commitment to the Bloom Energy framework to support an additional CapEx project. Looking beyond the projects already secured, momentum in AI infrastructure is accelerating, with our AI factory strategy gaining traction globally and expanding our pipeline of investment opportunities. In the U.S., Brookfield was selected by the Department of Energy to develop an AI data center campus in Kentucky designed to support over 1.2 GW of compute capacity. We have formed a consortium to advance the project through a bring-your-own power model.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

In South Korea, Brookfield, NAVER, and NVIDIA announced plans to develop 200 MW of sovereign compute capacity. Under the proposed arrangement, Brookfield would act as the exclusive capital partner to finance the deployment of GPUs at the campus, supporting one of South Korea's largest planned sovereign compute developments. We also expanded our framework with Bloom fivefold, from $5 billion to $25 billion of total CapEx, creating a significant pipeline of future deployment opportunities for behind-the-meter power solutions for leading hyperscale customers. Together, these initiatives demonstrate the breadth of our AI infrastructure opportunity set and our ability to originate large-scale projects on a bilateral basis by combining our digital infrastructure and power expertise with flexible capital at scale to support leading energy and technology partners globally. As these opportunities progress, we will only commit material capital once appropriate commercial arrangements are secured and our risk-adjusted return objectives are met.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

With a broader opportunity set in front of us, converting our growing pipeline to capital deployment is a key focus for the balance of the year. We are advancing opportunities across sectors and geographies through traditional M&A and strategic capital partnerships where leading companies are seeking long-duration capital at scale and an aligned operating partner. Together, these channels provide multiple avenues to deploy capital into high-quality opportunities at attractive risk-adjusted returns. One of our strategic initiatives for the year is to complete the recently announced corporate simplification to convert BIP and BIPC into a single publicly traded corporation, Brookfield Infrastructure Partners, Inc. We believe the simplified structure will provide improved trade liquidity, increased demand from index funds and ETFs, and broader access to investors who prefer a traditional corporate structure, among other benefits.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

We expect the simplification to be tax-deferred for Canadian U.S. investors and completed without any meaningful cost to the business. Special meetings of BIP unitholders and BIPC shareholders will be held on October 14th, and we anticipate completing the simplification in the fourth quarter of 2026. Ultimately, we expect this simplification to drive long-term value for all security holders. In closing, we enter the second half of 2026 from a position of strength. Resilient operating performance, a healthy balance sheet, and meaningful proceeds from recent asset sales provide significant flexibility to pursue attractive growth opportunities. This concludes my remarks, and then I'll pass it back over to the operator, Crystal, to open the line for Q&A.

[Operator]

Thank you. At this time, we will conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by, we compile the Q&A roster. Our first question will come from Cherilyn Radbourne from TD Cowen. Your line is open.

[Cherilyn Radbourne, Managing Director and Equity Research at TD Cowen]

Thanks very much, and good morning. Clearly, the market has become more anxious about the CapEx going into AI and data centers and the timing of the payoff. I was hoping you could speak to the opportunity set and just how BIP is able to maintain its investment guardrails against that backdrop. Maybe you could touch on whether you're seeing a degradation in contract terms more broadly across that space.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Hi, Cherilyn. Maybe I'll start off, and then I can ask Lief Williams, who's with our AI infrastructure group, to add further color. Maybe just to begin with, as far as the momentum in the sector and the demand signals that we're seeing, we've definitely seen no reduction in the developments underway or the speed to which our clients are looking to bring forward projects. While capital markets have obviously pulled back in the last couple of weeks, customers, and our customers are the largest hyperscales in the world, are obviously thinking about longer term trends as opposed to short-term gyrations. I would say your question regarding degradation of contracts, we've always told our investors that we will only deal with the highest quality customers and invest in those projects where we have, as I mentioned earlier, proper risk-adjusted returns.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

The main guardrail, to be honest, is the fact that all these projects require a significant amount of debt capital. In order to source that debt capital, you need to have high quality counterparties. If you don't, then you're not going to be able to raise the equity capital, to be honest. While there might be some smaller projects that others might be pursuing, where they're taking on lesser quality counterparties, in our case, we're only dealing with the best, and we're not seeing any degradation in terms. Maybe since we have Lief on the line, Lief, do you want to talk about any trends that you're seeing as far as new developments?

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

Thanks, Sam, and thanks for the question, Cherilyn. I think from a commercial terms perspective, I think as Sam said, we continue to see strong contracts from our customers. I think in terms of development yields, I would say it's still kind of high single digits, low double digits. I think that you see that move a little bit with interest rates. We are in a slightly higher interest rate environment than maybe in the past. I think you see that ultimately flows into development yields as well as the annual escalator. Again, whereas historically that's fluctuated between 2%-3%, I think right now you're seeing that really at the higher end of that range. So really more 2.5%-3%.

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

The last key commercial term I would highlight is on lease term. Again, typically the focus for greenfield projects is 15 years plus. We are starting to see customers who are open to a 20-year initial lease term. Again, from our perspective, that's a crucial input to developer returns. Overall I would just characterize it as a strong market on the private side. We see very good demand, and we think that it's a great opportunity to deploy capital at attractive risk-adjusted returns.

[Cherilyn Radbourne, Managing Director and Equity Research at TD Cowen]

Thank you for that detail. Just to make this call not all about data, I thought I would ask about where else you're seeing opportunities outside of data. One area where we're seeing some sort of news and potential activity is industrial carve-outs with resource companies looking to sort of focus on core operations and carve out utilities and things of that nature. Are you seeing that in your pipeline as well?

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Yeah. Maybe just to touch on the first part of your question, I can come back to maybe carve-outs. You're asking where are we seeing knock-on effects in other parts of our business. One area where you might not expect there to be a lot of impact is in our transportation business, where we're seeing a lot of what we always refer to as the domino effect of all these developments are requiring products and assets from different parts of the world. We're seeing that reflected in trade flows. Maybe Dave Joynt, who runs our transportation business. We have him on the line here. He can talk a bit about what we're seeing through Triton from a transportation perspective.

[Dave Joynt, Managing Partner at Brookfield Infrastructure Partners]

Yeah. Thanks, Sam, and thanks, Cheryl, for the question. Overall, I think you've seen a very strong quarter for us on transportation, what might be a little bit hidden by that is that a lot of that strong demand is actually coming from the big build out of data centers themselves. If you look at Chinese exports on a year-to-date basis, it's up nearly 20%. What is underneath that is machinery and motors and transformers and pumps and valves and tubing that goes into lots of the machinery that goes into the complex itself. That is flowing through certainly a very strong demand environment for our container leasing business, but also for our ports and our rails on a global basis.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Yeah. Maybe just to answer your last question, maybe we'll keep it short, we are definitely focused on strategic partnerships and carve-outs in a number of sectors. That's something that worked well on the railcar leasing side that we recently did. We're seeing a number of industrial companies looking to take advantage of capital available from the infrastructure players like ourselves to source low-cost capital to grow their operations. That is a focus. Hopefully some of the transactions we'll announce in the coming quarters will demonstrate that.

[Cherilyn Radbourne, Managing Director and Equity Research at TD Cowen]

Thank you for the time.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Thank you, Cheryl.

[Operator]

Thank you. One moment for our next question. Our next question will come from Devin Dodge from BMO Capital Markets. Your line is open.

[Devin Dodge, Director of Research at BMO Capital Markets]

Yeah, thanks. Good morning. It seems like the AI factory strategy is really starting to gain traction here. It's obviously great to see. It seems like based on your comments, Sam, there's still a lot of irons in the fire. Just wondering if you can frame how large of an opportunity the AI factory strategy could be over time and maybe just for the projects and frameworks that you've secured to date, just any thoughts on potential equity commitments or deployment timing from a good perspective?

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Okay. Well, again, I might ask Lief in a second to just comment on some of the initiatives we have globally. Some are still in the early stage, we can't get into too much specifics on them. I'd say we've been busy developing a number of them for the past year. To the extent that they are sovereign AI factories, those tend to take a bit of time, just because of the nature of dealing with governments. On the potential deployment, I think if we look out over a longer term timeframe, on a three to five year timeframe, I think we see the potential for BIP to be significant and a major component of our investments.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

What I would say is, because many of these opportunities are development related, there is a delayed draw component to them. The capital gets deployed over a period of time. I think the significant dollars for the AI factories will come in a couple of years as opposed to the next year or two. I think I would just caution you from that perspective, even though we're discussing large dollars here, I think they're somewhat back-end loaded, to use that terminology. Maybe now just to get into some of the projects we're working on. Lief, do you want to just give a quick update?

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

Absolutely. Thanks for the question, Devin. I think as Sam articulated, we see a massive opportunity in the space. We think that in excess of 100 GW of incremental load will be required over the next decade. I guess when you think about that, really hyperscalers are looking for partners who can engage at scale and can really help move the needle from that perspective. When you think about building out a gigawatt-plus scale campus, that's a huge, huge undertaking. We announced a project yesterday in West Kentucky, that is located on a Department of Energy site, that will ultimately serve a data center with in excess of 1.2 GW of IT load. I know that type of project will require up to $100 billion in private capital.

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

That will support both the data center itself as well as the compute inside and the power generation that will support it. We think that that last piece is a really crucial component to building out these AI factories. Being able to indicate that there will not be an adverse impact to local ratepayers and that these AI factories are bringing their own generation. We think that that's crucial both for the data center itself from a practical perspective in terms of having the electrons available, but also from a social license perspective and ensuring that there's strong local support and that these sites are bearing the cost of the grid that is ultimately required.

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

From Brookfield's perspective, we've been looking for sites like this around the world, given our global footprint. As mentioned, we announced a large-scale project yesterday in the U.S., but we also have large-scale sites in Canada, in Europe. We recently announced one in South Korea. We think that we're very well-positioned to be a partner of choice for these large technology companies and sovereign governments around the world.

[Devin Dodge, Director of Research at BMO Capital Markets]

Okay. Thanks for that. Just the follow-up to that is, just for your data center businesses, there seems to be growing pushback around the build out of these facilities. Definitely seen that more recently in the U.S. Just how do you think this plays out over time? Do you build where there's less resistance or are there different approaches being pursued that could address at least some of the concerns from governments and local communities?

[Ben Vaughan, COO at Brookfield Infrastructure Partners]

Yeah. Thanks, Devin. It's Ben here. As you noted, there definitely is an increased NIMBYism or pushback against certain data center developments. There are also I just make the observation, there's lots of sort of false narratives and perceptions out there about the industry itself. Our experience is that many local communities do welcome data center investments. From a geography perspective, I think as you noted, the NIMBYism is probably most prevalent in the U.S. right now. We are noting that it's growing, I would say, in the European market, and we are starting to see some of this type of pushback in smaller markets like Canada as well. It's definitely a dynamic. In terms of the false perceptions themselves, they mostly relate to things like water consumption, rising electricity rates, and noise.

[Ben Vaughan, COO at Brookfield Infrastructure Partners]

A perception that data centers create a lot of local noise. What the industry broadly is focusing on are very fulsome solutions to those types of issues, because there are examples where those issues do manifest themselves. Although by and large, the industry is good at these things. The specific things are closed loop water cooling, as an example, where the consumption of water is de minimis. Being neutral to actually positive on electricity rates and in supporting local utilities, in supporting their local grids and minimizing noise.

[Ben Vaughan, COO at Brookfield Infrastructure Partners]

With that, I just say, our businesses that we're focused on and our operating companies, we're leaders on all of these fronts in the industry, and we are seeing support from many local communities. In terms of your question of where data centers get developed, I do think that the industry itself, there are lots of false perceptions, and the industry is actively working on ensuring that it has solutions to all the concerns. We're just focusing on the geographies where developments are welcome.

[Devin Dodge, Director of Research at BMO Capital Markets]

Okay. Thanks for that, Ben. I'll turn it over.

[Ben Vaughan, COO at Brookfield Infrastructure Partners]

Okay. Thank you.

[Operator]

Thank you. Our next question will come from Maurice Choy from RBC Capital Markets. Your line is now open.

[Maurice Choy, Canadian Energy Infrastructure Analyst at RBC Capital Markets]

Thanks, good morning, everyone. Or good afternoon. Good morning. Just a quick question on AI for a moment. Notwithstanding all the comments that you just made about NIMBYism and an earlier response about timing of payoff for the CapEx in AI, you've obviously been quite successful in signing a number of AI-related deals in Kentucky and South Korea. Maybe we are front-running the Investor Day a little bit, but I'm curious whether you see these AI opportunities as progressing in line with your prior projections, or are there pockets of the AI infrastructure value chain that you think may be accelerating?

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Well, maybe Dave can talk about just from our business plan perspective, how it's playing out. Then, sorry, and your second question was? Can you repeat that?

[Maurice Choy, Canadian Energy Infrastructure Analyst at RBC Capital Markets]

Whether or not you felt all these AI opportunities were progressing in line with your prior projections, or were there pockets of the value chain that you think may be accelerating?

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Gotcha.

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

Yeah, well, I'll start. Good morning, Maurice. Look, I think from a business plan perspective, I'd say it's fairly in line with what we had expected from a deployment perspective. I think maybe the pace of the announcements and the initial frameworks agreed to maybe have accelerated a little faster than we would have thought. Otherwise, from a pure investing perspective, I think we're right on track. You will recall at Investor Day last year, we said, look, if the AI infrastructure strategy kind of unfolds the way we thought it would, we would be deploying $500 million of equity a year into this strategy.

[Lief Williams, Managing Director at Brookfield Infrastructure Partners]

Look, I think with Bloom to date, we've probably done, the contracts we have in place would probably put us close to $100 million year-to-date. If we do upsize the framework and participate, that'll certainly get us closer to the midpoint of the high end of that range we gave. As we look ahead to the following years to come, I think as we progress the commercial fronts on the AI factories in the various regions that Lief referred to, I think that'll help achieve that $300 million to $500 million of equity invested in AI infrastructure on an annual basis. I think we're kind of in line with where we thought we'd be.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Maybe just on your second part of your question about are we seeing all the various pockets of the value chain generating opportunities for us. Our AI group commonly refers to $7 trillion of potential opportunities, which obviously is a big number. You can already see with the magnitude of the projects that we've signed that the market is massive. We generally talk about four areas where we see opportunities. One would be AI factories, two would be compute, three would be behind-the-meter power opportunities, and then we have a catchall area of adjacencies related to AI. In terms of the first three, I think you can see that we are actually advancing the strategy quite well.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

In terms of compute, we've established Radient, which is our in-house neocloud, and we've already signed agreements with customers to provide compute, and the most recent one would be with NAVER, obviously, which will scale that up dramatically. Behind-the-meter power opportunities, Bloom is a poster child for that, and I don't think we could have asked for anything better than that relationship. In terms of the AI factory, Lief just described all the different ones that we're pursuing. We expect those to be shelf-ready, hopefully, in the next number of quarters.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

In terms of the first three components, I think absolutely, we've demonstrated the opportunities. On the adjacencies, that's really in all parts of our business, seeing opportunities come out of AI and as Dave mentioned, we're seeing trickle on effects into our transportation business. I think the opportunity set is absolutely developing as we expected, and I think as you alluded to our upcoming Investor Day presentation, we'll probably touch on this a lot more.

[Maurice Choy, Canadian Energy Infrastructure Analyst at RBC Capital Markets]

Yeah, looking forward to that. If I could finish off with a comment that you've made, I think quoting you on a press release, "The public markets have been increasingly effective exit channels to maximize value in your capital recycling program." Can you unpack that a little bit for us, especially relative to the private channels that you've utilized more in the past, or perhaps how the private channels may have changed?

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

Yeah. Maybe I'll answer that question. In short, nothing's changed on the private channels. The private channels remain open and all the various, we refer to our tools in our toolkit to exit, remain very relevant and we're executing them as we speak. What has changed in the last, let's call it nine to 12 months, is just the fact that the equity capital markets opened up and were very receptive to new IPOs, which we hadn't really seen for a couple of years. I think, prior to doing the Rockpoint IPO, I think the previous one was probably BBI, which was like 2020 or something like that. Going back three, I guess maybe longer, five years.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

We're just taking advantage of the market as it exists as really just a competing source of capital to the private markets. In some industries, it's competitive, in other industries, it's less so. The window opens and closes. It's probably closed for the next little bit, but I suspect it will reopen just given some of the exciting companies that we know are coming to market in the fall. We definitely don't think this market has shut for sure. It's going to reopen. We'll continue to consider it on other opportunities.

[Maurice Choy, Canadian Energy Infrastructure Analyst at RBC Capital Markets]

Thanks for the color. Thank you very much.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

All right.

[Operator]

Thank you. As a reminder, to ask a question, please press star one one. Thank you. I am showing no further questions from our phone lines. I'd now like to pass the conference back to Sam Pollock for any closing remarks.

[Sam Pollock, CEO at Brookfield Infrastructure Partners]

All right. Well, thank you, Crystal. Thank you to everyone for joining the call this morning. We hope everyone's enjoying their summer so far, for those in the Northern Hemisphere. Look forward to hosting all of you for our Investor Day in Toronto on September 29th. We look forward to providing you an update on all our strategic priorities and our growth outlook. In the meantime, thank you again, and I hope you have a great day.

[Operator]

Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• David Krant, CFO
• Sam Pollock, CEO
• Lief Williams, Managing Director
• Dave Joynt, Managing Partner
• Ben Vaughan, COO

Analysts

• Cherilyn Radbourne, Managing Director and Equity Research at TD Cowen
• Devin Dodge, Director of Research at BMO Capital Markets
• Maurice Choy, Canadian Energy Infrastructure Analyst at RBC Capital Markets