Brookfield Infrastructure Partners (NYSE:BIP) executives used the company’s fourth-quarter 2025 earnings call to highlight a year of funds from operations (FFO) growth, record capital recycling, and an expanding opportunity set tied to data infrastructure and AI-related investment. Management also announced another distribution increase, extending the partnership’s long-running record of annual raises.
2025 results and distribution increase
Chief Financial Officer David Krant said Brookfield Infrastructure generated FFO of $2.6 billion in 2025. Normalized for asset sales and foreign exchange, FFO increased 10% versus 2024, which Krant said was in line with the company’s target and reflective of operational performance. Fourth-quarter results included record FFO of $0.87 per unit.
Segment performance: utilities steady, data jumps
Management detailed FFO contributions across the partnership’s operating segments:
- Transport: FFO totaled $1.1 billion, in line with the prior year after normalizing for $1.8 billion of capital recycling initiatives. Krant said lost earnings from sold assets were partially offset by higher revenues across transportation networks, with rail and toll road volumes and rates growing about 2% and 3%, respectively.
- Midstream: FFO of $668 million represented a 7% year-over-year increase, driven by higher volumes and activity at Canadian natural gas gathering and processing operations and at a recently acquired U.S. refined products pipeline system.
- Data: FFO of $502 million rose more than 50% compared to the prior year period. Krant attributed the “step change” to new investments over the last 12 months, including a U.S. bulk fiber network that fully contributed to fourth-quarter earnings.
Within the data segment, Krant said organic growth included commissioning 220 MW of capacity at hyperscale data centers, 200 MW of new billings at a U.S. retail colocation operation, and income generated by global data center developers. He added that Brookfield’s global data center platform now has development potential of approximately 3.6 gigawatts, including contracted capacity of more than 2.3 GW.
Capital recycling, liquidity, and financings
Krant said 2025 included a “record year” for capital recycling, with Brookfield Infrastructure raising $3.1 billion in asset sale proceeds and exceeding its $3 billion recycling target. The partnership also invested about $2.2 billion of equity into growth initiatives and completed roughly $16 billion of financings, which Krant said helped de-risk operating company balance sheets.
Brookfield ended 2025 with $6 billion of liquidity, including just under $3 billion at the corporate level. Krant said management expects an elevated pace of recycling to continue and cited two transactions already secured.
The first was an agreement to sell the largest of four concessions within its Brazilian electricity transmission operation, with expected proceeds of approximately $150 million net to BIP. Krant said the sale would generate an attractive 45% internal rate of return and an over 8x multiple of capital, with closing expected at the end of the first quarter of 2026. The second involved forming a capital partnership for a portfolio of stabilized and under-construction data centers in North America, with proceeds expected to support build-out of the powered land bank in that business.
AI infrastructure: “guardrails” and return profile
Head of Global Data Center Businesses Udhay Mathialagan said the physical build-out supporting AI is driving demand for backbone infrastructure including data center capacity, grid resiliency, power generation, and transmission, while also leaving the sector exposed to overbuilding, technological change, and disruption. He outlined five “guardrails” Brookfield uses to participate in AI infrastructure while protecting capital: long-term contracted development (no speculative builds), investment-grade counterparties, top-tier “workload-agnostic” locations, discipline around land and powered shells supported by a self-funding model, and matching capital structure to contracted cash flows.
Mathialagan pointed to record activity in 2025. At the U.S. colocation data center business, he said the company recorded 11 consecutive quarters of record bookings, with several markets fully utilized. During the quarter, Brookfield signed multiple large contracts at a data center in Illinois, reaching 100% occupancy and adding approximately $45 million of annual EBITDA on a run-rate basis, commencing later in 2026. He also said a 40-site data center portfolio added in January 2024 helped increase contracted EBITDA from roughly $200 million to approximately $500 million for the combined business, without additional equity investment.
Across the broader platform, Mathialagan said Brookfield executed agreements for about 800 MW of capacity during the fourth quarter, predominantly in North America, with most leases backed by investment-grade customers and long-term contracts. He added that in 2025 the company partnered on almost 850 MW of stabilized and operating sites in North America and Europe, “crystallizing developer premiums.”
On returns, CEO Sam Pollock told analysts Brookfield develops new data centers at an average yield-to-cost of about 9% to 10% and monetizes them at cap rates of roughly 5.5% to 6%, implying development profit in the 300 to 400 basis point range. With leverage “in the 70% range” on development, Pollock said equity returns—“if we do everything right”—can land in the high teens or twenties.
Mathialagan also addressed technology risk, saying Brookfield’s role is to provide core infrastructure while staying out of customers’ compute technology choices. He said long-term contracts specify what the company delivers and are structured so that if changes in customer needs require underlying infrastructure modifications, those changes are not at Brookfield’s cost.
New investments and 2026 outlook
Pollock said Brookfield Infrastructure deployed about $1.5 billion into new investments in 2025 and expects momentum to carry into 2026, supported by a diversified pipeline. During the quarter, the company completed the first project under its framework agreement with Bloom Energy, installing 55 MW of behind-the-meter power for a U.S. data center site. Pollock said additional projects have been secured for several hyperscaler customers, bringing the total under the framework to roughly 230 MW, with contract terms of at least 15 years. Total equity investment across these projects to date is expected to be approximately $50 million, fully deployed by mid-2027.
Also in the quarter, Brookfield closed the acquisition of a South Korean industrial gas business, described as a leading supplier to investment-grade semiconductor manufacturers. Pollock said the total equity purchase price was $125 million for Brookfield’s share. On Jan. 1, Brookfield also closed an acquisition of a railcar leasing platform in partnership with a railcar lessor, with Brookfield’s total equity consideration at approximately $300 million.
Looking ahead, Pollock said the company sees a “highly constructive” backdrop for infrastructure in 2026, pointing to structural themes of digitalization, decarbonization, and deglobalization, as well as expanding AI-related opportunities across data centers, power, and connectivity. With what he described as a stable interest rate and foreign exchange environment, Pollock said Brookfield is positioned to return to its 10% or higher per unit growth target in 2026 and beyond.
About Brookfield Infrastructure Partners (NYSE:BIP)
Brookfield Infrastructure Partners L.P. (NYSE: BIP) is a publicly traded limited partnership that owns and operates a diversified portfolio of infrastructure assets across four core sectors: utilities, transport, energy and data infrastructure. Through long-lived, regulated or contracted assets, Brookfield Infrastructure provides essential services such as electricity transmission and distribution, toll road and port operations, midstream energy logistics and fiber-based data networks.
The company’s utilities division encompasses regulated electricity and gas distribution networks in North and South America, Europe and Australia, ensuring stable cash flows under current regulatory frameworks.
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