Foxconn and Brookfield Partner to Build 1 GW of Clean Energy in Vietnam

Foxconn’s accelerating transformation of its Vietnam factories into high-tech production hubs for drones, gaming consoles, and humanoid robots has created an urgent need for a reliable, sustainable power supply. On June 9, 2026, the world’s largest electronics manufacturer answered that need by unveiling a strategic clean-energy partnership with Brookfield Asset Management to co-develop up to 1 GW of new utility-scale generation in the country .

This partnership is not a simple off-take agreement. It is a co-investment and asset-management collaboration that will bring new wind, solar, and battery storage capacity online, underpinned by a long-term Power Purchase Agreement (PPA), and funded through one of the most closely watched climate-finance vehicles aimed at emerging economies.

What the 1 GW Portfolio Includes

The projects will be built across three technology pillars:

• Utility-scale wind power
• Utility-scale solar photovoltaic generation
• Battery energy storage systems (BESS)

The electricity generated will be supplied directly to Foxconn’s own manufacturing operations and those of its supply-chain partners in Vietnam .

A PPA Backed by Policy Reform

The commercial spine of the partnership is a long-term PPA, structured to align with Vietnam’s evolving Direct Power Purchase Agreement (DPPA) mechanism . This policy framework, which Vietnam has been developing to let large consumers buy renewable electricity directly from private generators, is critical to the deal’s viability. The parties stated they will advance the projects as the DPPA framework progresses .

The Money Behind It: Catalytic Transition Fund and ALTÉRRA

Brookfield is deploying capital through its Catalytic Transition Fund (CTF), a dedicated vehicle created at COP28 to scale clean-energy and transition investments in emerging and developing economies . Key features of the CTF include:

• A target size of up to $5 billion for deployment across emerging markets .
• A $1 billion anchor commitment from ALTÉRRA, the UAE-backed climate investment platform designed to provide catalytic, risk-absorbing capital .
• A successful first close at $2.4 billion in September 2024, with ongoing fundraising toward the larger target .
• An explicit regional focus on Southeast Asia, with Malaysia, Vietnam, the Philippines, Thailand, and Indonesia identified as core deployment markets .

The Foxconn partnership is a natural fit for the CTF’s mandate: to use blended capital to unlock large-scale decarbonization projects in countries where energy transition financing has historically lagged.

Brookfield’s Southeast Asia Footprint Built on Prior Deals

Before the Foxconn announcement, Brookfield had already made three foundational investments in the region through the same fund, all closed in November 2025:

• Alba Renewables: Brookfield acquired the Singapore-based clean-energy developer, which holds a 1.8 GW portfolio of wind, solar, and battery storage projects located predominantly in the Philippines and Thailand . This deal gave Brookfield an established development pipeline and local operating platform in two key ASEAN power markets .
• Central Vietnam wind project: Brookfield also bought a 100 MW operational, long-term contracted wind farm in central Vietnam, marking its first direct asset entry into the country’s renewable sector .

These two transactions transformed Brookfield from a regional observer into an active clean-energy owner-operator with roughly 1.9 GW of capacity or development pipeline across three Southeast Asian countries before the Foxconn deal.

Foxconn’s Expanding Footprint—and Rising Power Demand

The 1 GW renewable energy target is sized against a remarkable expansion of Foxconn’s manufacturing presence in Vietnam. The company has systematically moved beyond legacy electronics assembly into heavier, higher-value, and more energy-intensive production categories.

At its Bac Ninh province facility, operated by subsidiary Fushan Technology (Vietnam), the current production scope includes:

• Approximately 140 million mobile phones per year .
• 100,000 unmanned aerial vehicles (UAVs) annually .
• Up to 4.8 million Xbox gaming devices per year .
• Roughly 16.8 million electronic and audio devices .
• Total annual capacity across all lines: more than 171 million items, with output still below full capacity, suggesting room for further load growth .

In April 2026, Fushan Technology submitted environmental permit applications to add humanoid robot production lines at this plant—a significant leap into high-value automation equipment . The expansion will increase overall factory output and, critically, electricity consumption. After expansion, total electricity use at the facility is estimated to reach around 109 million kWh per year .

Beyond Bac Ninh, Foxconn has committed approximately $250 million to two new projects for electric vehicle (EV) and telecom components in northern Vietnam . With more than $4 billion in cumulative investment and over 94,000 employees in the country as of 2025, the scale of Foxconn’s electricity demand growth is clear .

This demand trajectory coincides with Vietnam’s broader power-supply challenge. National electricity demand was projected to grow 10.5–13% in 2025 alone, with annual growth of 12–15% forecast through 2030 as manufacturing, data centers, and electrification strain an already tight grid .

The Strategic Logic

The partnership lets Foxconn secure a dedicated, long-term supply of clean electricity to meet sustainability requirements of its global customers while insulating itself from Vietnam’s grid constraints. For Brookfield, it represents the CTF’s most significant corporate offtake anchor in Southeast Asia—creating a scalable template for co-investing with large industrial energy users across the region.

The structure reflects the broader evolution of corporate clean-energy procurement in emerging markets: moving from passive certificate purchases toward direct, utility-scale project development backed by international institutional capital and supported by host-country regulatory reform.