BIPC - A Transformational Transaction Further Positions This Incredible Dividend Stock to Capitalize on a $1 Trillion Opportunity
2023-11-03 05:01:00 ET
Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) believes we're in a once-in-a-generation investment cycle for data centers. The company forecasts that the world must invest more than $1 trillion into building new data center capacity over the next decade. That investment level is needed to support the forecasted explosive growth in data consumption, which could accelerate as more companies utilize data-dependant artificial intelligence (AI) applications.
The company has taken several steps this year to enhance its ability to capitalize on this enormous investment opportunity. The latest one is a transformational transaction to acquire a portfolio of data centers out of bankruptcy from Cyxtera . That puts Brookfield in a stronger position to continue growing its high-yielding dividend.
Brookfield Infrastructure is acquiring a portfolio of data centers out of bankruptcy from Cyxtera and the underlying real estate of several sites from third-party landlords. The total purchase price for the data centers and real estate is about $1.3 billion, which includes transaction costs and the net proceeds from selling non-core sites to a third party. In a separate deal, Cyxtera has agreed to sell its data centers in Montreal and Vancouver to Cologix.
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A Transformational Transaction Further Positions This Incredible Dividend Stock to Capitalize on a $1 Trillion Opportunity