Good morning, and thanks for joining Brookfield Infrastructure's Investor Day presentation. Pleased to welcome people online who are joining us as well as everyone who was able to join us in person today. Presenting with me will be 2 of our regional CIOs, Scott Peake and Sikander Rashid as well as our Chief Financial Officer, David Krant. And my name is Sam Pollack, and I'll be doing a quick summary of our year to date. And I'm Pleased to say that it has been just another fantastic year for us.
And over the next couple of slides, I'm going to take you through some of our accomplishments. Now, 1st and foremost, our capital deployment for this year has been excellent. Each year, one of the key focuses that we have is to deploy as much capital as we can into assets with attractive Risk Adjusted Returns. Last year at this time, I foreshadowed that we expected to enter a cycle where we would deploy more capital than we historically have. And I'm pleased to say that this year, we're on track to deploy approximately $3,000,000,000 which is about 50% higher than our run rate levels over the past several years.
Furthermore, our pipeline of opportunities heading into 2022 is extremely robust. Now, as most of you probably know, the most significant investment that we've made this year was into inter pipeline. We've now secured a controlling stake in the company and we will fully privatize it by the end of the year. Now Scott is going to come up in a little bit and take you through The transaction in a lot more detail and why we're really excited about it. But one of the things that's really important to note is that it's a large scale, highly contracted business.
And we were able to make a significant investment into the company back just after the market fell in March of 2022. And so we've built up a fairly large total position. And because of that total position, The transaction is going to be extremely accretive for us. To date, we've invested about $1,800,000,000 into the transaction and this will grow to about $2,500,000,000 once it's fully privatized. Now, we've also been highly successful in our capital recycling initiatives.
As we've mentioned many times in the past, Capital recycling is a key element of our full cycle investment strategy. This year, We've generated already about $2,000,000,000 of proceeds from asset sales and we've done those at extremely attractive values. We are going to continue our asset recycling initiatives during the balance of the year. We have about 3 Process is underway, and we expect to generate probably about $1,000,000,000 from those processes in the next 6 months or so. Furthermore, we intend to continue this strategy of ours, given the strong market appetite for de risk businesses, And we'll look to start up a new set of asset disposal processes during 2022.
And I think our medium to longer term goal in that regard is to generate about $5,000,000,000 in the next 3 to 5 years from those processes. Now, at the same time as we've been repositioning our portfolio, the operating results for the business have been extremely strong. This has been primarily a result of the good economic recovery we've seen. We've also seen elevated levels of inflation and we have lots of inflation indexation built into our revenue frameworks. And on top of that, with the strong economy, there's been many customer initiated growth CapEx that's helping fuel the organic growth.
Our year to date FFO is up approximately 20% And it's over 50% higher, 15% higher than pre pandemic levels. These results have benefited from about 9% organic growth, which is at the upper level of what we would normal target for the business. And then lastly, you're probably curious about how our transport businesses are doing, given that they're the ones impacted by the pandemic. And I'm pleased to say that they're all performing well And we're experiencing strong year to date growth in volumes from almost all the different sub segments. Roads are up 21%, port 16% and our rails, which were pretty steady through the pandemic, are up 5%.
Now, Our financial position is also as strong as it's ever been. Our investment to date in IPL has been funded by about $1,400,000,000 of BIPC to shares. And this was done as part of the offer to IPL shareholders. And what's very interesting is the fact that Our offer to IPL was an all cash offer, but IPL shareholders pretty much maxed out on the number BPCC shares that they could take, which shows you the interest that investors have in our shares. We have further insulated our business with about $9,000,000,000 of refinancings at the asset levels.
And what this has done is it will protect us from rising rates. But in addition to that, we've pushed out the average duration on the maturities by about 5 years on those businesses. And then lastly, one of the things that Many of you don't know about our business. We have some FX volatility, but with the IPL transaction, about 85 Our FFO will now be generated in or hedged to U. S.
Dollars and this is going to significantly reduce the volatility of FX in our business going forward. So all those initiatives have contributed to us having a strong balance sheet, lots of liquidity to fund new investments. And we don't have any maturities for the next or not many in the way of significant maturities in the next 5 years, and our credit ratings are strong at BBB plus So I want to take a second to talk about ESG because this is something that obviously there's increased scrutiny around ESG related risks in many companies, in particular our own. Our business has always been well placed in this regard, And we've taken a number of steps to ensure that we continue to improve upon our ESG position. Last week, we published our inaugural ESG report, and this summarizes our approach to sustainability across our businesses.
If you're interested in learning more about what we're doing on the ESG front, you can go to our website. You can see our ESG report. And this will be a report that we update annually, so that we'll keep you up to speed on what we're up to. Now, in addition to that, at the corporate level, we've recently issued $400,000,000 of preferred securities, which is a good testament of the market receptivity to our ESG principles. At the portfolio company level, We've identified a number of opportunities where we can reduce carbon emissions at each of our assets.
In addition to that, We're also looking at ways where we can start the process or at least think about how we might transition some of our businesses in the future. And one good example of that is where we've with A customer of ours are looking at doing a feasibility study for a green hydrogen export facility, and this is taking place at our Australian regulated terminal. So look, this is a summary of how we've done and we're always happy to show it. All in all, this has been another great year for the company from a market perspective. The total return of the business has performed well, both from an absolute basis, but also on a relative basis to the market and peers.
So I'm going to shift gears a little bit and just try and look forward and talk about our outlook. And I'll begin with the near term, which I think is quite favorable. Our results are going to significantly improve as a result of the benefits of our asset rotation strategy. We anticipate that our $2,500,000,000 investment in IPO will generate an approximate 13% going in FFO yield. This will actually increase over the next couple of years as we bring on the large petrochemical facility, Heartland, which is one of the reasons why we bought IPL.
The funding for this business has come from proceeds from our District Energy business, which we sold at about a 5% FFO yield, as well as the issuance of the BIPC shares that I mentioned earlier that were taken up by the IPL shareholders as part of the consideration for that transaction. Upon completion of the IPL privatization, we expect the combined impact of our asset rotation strategy to result in about 12% FFO per unit accretion
for the
company. We just think this is just another great example of our asset recycling strategy at work. Now if we look at the numbers, Our 2021 exit run rate FFO for the business should be over 20% higher than it was last year. This is a combination of both the Strong organic growth that I talked about a little bit ago, as well as the asset rotation strategy that we've executed this past year. At the same time, our payout ratio, which is a metric we talk about quite a bit given that we're a yield oriented vehicle, will drop back into our target range of 60% to 70%, which we're very pleased about.
So let's talk a bit about the longer term outlook. So at last year's presentation, we talked about the fact that we were in the beginning stages of the infrastructure super cycle. I realize that's a pretty dramatic expression. But things have played out pretty much as we have anticipated. Now, if you start with the situation with governments and corporates.
Debt has continued to rise to unprecedented levels. In addition to that, governments have realized that the best way to stimulate growth is to invest in infrastructure. And so if you take the combination of those two factors, We think that's going to result in a significant amount of transactions for us. 2nd, we talked about what's going on in the world of telecom and data. Data infrastructure systems are going to have to be significantly upgraded to keep up with the global demand for data.
And to cope with these capacity needs, telecom operators, They're in the process of 100 year reinvestment cycle of all their major systems, and they're going to need infrastructure investors to help them fund all that CapEx. 3rd, I mentioned ESG. Well, ESG trends, They are creating opportunities for us in the midstream sector. Capital is becoming scarcer for midstream companies. That alone will create opportunities for us.
But probably what's more important on a longer term basis is that these companies are going to need capital to help them transition their businesses into a net zero world. I think they're going to be and I don't want to steal Scott's thunder. But he's going to talk about how those businesses are well placed in the world to transition into a net zero environment. And then lastly, just from a transport perspective, these assets need capital to debottleneck and add capacity to their networks in order to deal with the increased global demand for goods and commodities. So while the super cycle It continues to blow positive tailwinds in our favor and for our business.
We'll continue to do what we've all we set out to do from a strategic perspective. That's buying high quality assets for value and de risking those business with our operations oriented approach. I know you hear that a lot whenever you come to a Brookfield presentation. And those are strategies that we've probably talked about quite a bit in the past. This year though, we've chosen to focus on another part of our strategy for creating value, and that's about building platforms.
And so David and Sakan are going to speak in a few moments about how we do that and give you a more detailed sense of that, but I want to give you just a bit of an overview of what we're going to talk about. So usually Bahir comes up and does the Brookfield Dictionary. We often introduce new terms to our investors. And couple of years ago, we talked about growthility. Today, you're going to hear platform a lot.
And so I apologize for the repetition. But if we had our dictionary here, what A platform means for us, it's basically a business that has substantial medium to long term organic and consolidation growth potential, consolidating smaller businesses in a fragment industry. In addition to that, it must also have the resources, the human, the technical, the financial resources in place to execute that growth strategy. The poster child for this would have been our District Energy business, which we just sold. But what we're excited about is the fact that we have many other examples to tell you about, and we're going to tell you about some of them today.
Now the reason, you're probably wondering why is it important to tell you about this. And the reason is we think this strategy can create significant amount of value for our shareholders over the longer term. Platform businesses, they create recurring streams of organic growth. And as we've probably mentioned many times in the past, the best source of capital deployment for us is organic growth because these are the highest returning, lowest risk capital that we can ever invest. What we think will happen because of all the initiatives we have underway is the ability to increase our capital backlog by over 50% in the next couple of years from where it is today.
Now second, we believe that there's the potential to realize outsized returns on the exit of platform businesses. David is going to go in his presentation and explain the embedded value that we have in a number of our businesses and the fact that we only realize these when we usually exit a business. And often people don't see it because it's hard to appreciate what value is there. But what we do know is that when we sell a platform business, we achieve superior returns And those characteristics are highly sought after by other investors. So I'll stop there.
We have a couple other presenters come up, and I think first up will be Scott to talk about IPL.
Great. Welcome, everyone. I'm Scott Peak. I'm a managing partner, and I'm our Chief Investment Officer for North America based in our office in Houston. I will provide the spotlight on Inter Pipeline.
But before I do, A question you may have is, again, what is our midstream investment strategy? And in particular, how does this align with the future transitioning away from fossil fuels? So let me provide a refresher on that strategy, and I'll cover how we incorporate the energy transition. We have 8 objectives that we look to satisfy for any midstream investment to be suitable. When we combine these opportunities and these strategies together, we come with an opportunity that is strategically located.
It's of an appropriate scale. It's comprised of infrastructure that has been responsibly operated and well maintained. We then position ourselves to invest on a value basis. We look for opportunities that have a high degree of contracted cash flow. This contracted cash flow provides us the opportunity to get not just a return of our capital, but a minimum return on our capital, all with a lower reliance on material growth or future exit value.
Then, and ESG is one of our points on our strategy, We position to answer 3 questions. The first is, is our investment increasing emissions or in any other way harming the environment? I'd note that midstream assets typically have very low emissions profiles, in particular operating pipelines where we focus. 2 is how is our downside protected in the instance of an accelerated transition? And this is where Our focus on contracted cash flow and a quick payback of our capital is critical.
And lastly, and this is where Sam touched on a bit, is How could the investment either be repurposed or otherwise enhance our ability to participate in attractive transition midstream investments? We actually see midstream opportunities ideally suited in midstream companies that are Able to lead decarbonization because they have the execution skills, they have the operating skills, not to mention the incumbent customer relationships. Therefore, we see certain midstream companies as having an embedded hedge or even an upside option that we can buy with no cost and enable us to opportunistically participate in transition investments. Now on to Inter Pipeline. We're obviously very excited about this opportunity.
Prior to closing this year, Inter Pipeline has traded on the Toronto Stock Exchange, where it's traded since 1998. It's headquartered in Calgary. It has a US13 billion dollars enterprise value, a US7 billion dollars market cap and is rated investment grade. BIP's total equity investment will be approximately $2,500,000,000 for approximate 50% interest. Our journey for IPL began in March 20 when we established a deep value toehold position in the company.
This toehold solidified us as the company's largest shareholder and provided a strategic advantage for us to facilitate the take private. Early this year, we launched a tender offer for the remaining shares of IPL we didn't already own. We received formal support from the 2 leading independent proxy advisors as well as the IPL special committee. To date, we've taken up 76% of IPL shares. And earlier this month, we executed a plan of arrangement, which facilitates our full acquisition and privatization later this year.
IPL provides us with an ideal platform in a strategic region of North America. 80% of EBITDA is contracted, 63% of EBITDA is contracted on a take or pay basis, with a remaining life of approximately 12 years. The remaining incremental 17% of EBITDA is on a fixed fee arrangement with customers that are integrated with predictable volumes. And so when we combine our appropriate access to capital with IPL's strategic position and relationships, This combination should position us as a decarbonization capital partner of choice for our customers. IPL checked all our boxes and aligned well with those objectives that I've referenced a few slides ago.
Our underwriting returns are at the higher end of BIP's 12% to 15% target range, sourced primarily from long term pipeline contracted cash flow. We have a target multiple of capital of 2.5 times. We acquired on a run rate EBITDA multiple approximately 10 times and we'll enjoy immediate mid teen FFO yield and a payback on our capital within 8 years. So why were we successful? Three reasons come immediately to mind.
First is we've covered IPL for many years. Out of our North American offices, we had an active investment file that we kept active and we then were patient. We waited for a catalyst. That catalyst came with a COVID led broad market sell off early last year. That provided us An opportunity to buy in our 20 percent toehold at a value below $12 a share, and this is a company that was trading between $20 or $30 a share for the couple of years prior to our toehold.
Lastly, we were able to offer a very unique and flexible form of consideration. Our offer to high deal shareholders was comprised of Three things. 1, they could have 100 percent cash at $20 a share. 2, they could have 0.25 shares of BIPC up to an aggregate limit or C, they could have a combination thereof. We thus had cash for those IPL shareholders requesting and requiring immediate liquidity.
We also had shares for those looking to remain invested. Ultimately, this combination proved to be a powerful differentiator and was key to our success. As Sam mentioned, BIPC continues to generate strong market interest. When BIPC was spun out in 2019, we communicated certain goals, including to increase BIPC's float and to utilize the currency when advantageous. IPL achieved both objectives.
IPL shareholders made strong elections for BIPC, which exceeded the maximum allotment that we had. And while we are pleased by that, we were also pleased by the diversity of the elections received as we had demand from both retail and institutional shareholders. The transaction serves as a clear validation of the BPSI currency and consequentially increased BPSI's float by approximately 50%. Let's now review IPL's operations and the Brookfield vision for the company. IPL is a highly contracted and strategic platform with EBITDA primarily sourced from contracted pipelines.
In the Transportation and Facilities segment, which accounts for over 60% of IPL's EBITDA, it's weighted towards long haul and conventional pipelines. This segment includes 7,000 pipelines with a 17 year weighted average life, and notably, this segment supplies about half the input required to run at the Heartland Petrochemical Complex. Heartland, which will represent approximately 30% of pro form a EBITDA, is nearly 90% complete and operational next year. Heartland will convert low cost propane into high quality polypropylene. Heartland's output is used for everyday products, which will be relevant for decades to come.
For example, infant car seats, Automobile car bumpers, whether that be for conventional or electric vehicles, moldings, carpeting, diapers, etcetera. Heartland is advanced not only from a construction perspective, but also from a commercialization and contracting perspective. All the input needed to run the facility has in place. Approximately 70% of the output has been contracted with 9 customers on a 9 year weighted average life. And these customers these contracts are cost of service contracts, which have mechanisms for cost pass through.
And lastly, the marketing segment, which is where any residual commodity exposure is housed and managed and hedged, represents less than 10% of EBITDA of the company. As usual, we'll be assuming an active role at IPL. We'll be rolling out our Brookfield policies, procedures, Our network of best practices and we'll have a particular focus on 3 things: risk management, stakeholder engagement and proper alignment and accountability across the business planning process. And we've already made significant progress. Our 100 day plan has been initiated.
The IPL board has been reconstituted. Progress is being made quickly with great team collaboration. There's a lot of excitement at IPL around both the integration with Brookfield the transition to a private company and the opportunities that that brings. Obviously, a lot of work is being done on the business plan on a segment by segment basis. But in summary, our top priorities across the business are: Harvest the contracted cash flow, complete Heartland on time, on budget next year, rationalize the public company costs that are no longer necessary, Streamline internal operations, reduce bureaucracy and make the company fit for purpose.
And lastly, to increase and expand contractual relationships. From an ESG and transition perspective, we will undertake a dual path. Path A is externally focused around serving our customers expand the transition opportunities. Notably, IPL's largest customers have publicly committed to net zero targets. Carbon sequestration will be an important element for them to achieve those targets.
Path B is internally focused. We're going to do what we can to reduce our own carbon footprint. We're going to do this through renewable generation and electrification of our assets. And 2, by expanding upon the hydrogen production capabilities that are already in place and in progress at IPL today. In conclusion, IPL represents an exciting, accretive investment of scale in a new platform for Brookfield Infrastructure.
We've already hit the ground running and have begun to implement our business plans. We look forward to the opportunity to update you over the coming year on our progress. Thank you. I'll now hand it over to David.
Thank you, Scott, And good morning, everyone. As introduced, my name is David Krant, and I'm the Chief Financial Officer of Brookfield Infrastructure. In recent years, the focus of this portion of the presentation had been on the resiliency of our business and rightfully so. However, as Sam mentioned, this year, we're going to focus on the outsized growth opportunities ahead of us. Let me demonstrate one of the ways in which we'll be able to do this.
Now following the outstanding results of our capital recycling program to date, we're often asked how do we achieve premium exit multiples? Well, to answer that question, we're going to focus on a concept called building platform value. Now, what I hope you take away from our time today is not just how we build platform value, but more importantly that it can often go unnoticed and not reflected in the valuation of our business. In its simplest form, the value of a business has 2 main elements. The first are the in place cash flows that are there today.
For a mature, de risked, standalone investment, this generally represents the majority of the value. And frankly, a market based multiple is very appropriate for those types of businesses. The second element, however, is the value a buyer will ascribe to future growth potential or opportunities. For the accountants in the room, this is goodwill. For the lucky people who aren't accountants, the important thing to know about goodwill is that when you are building it internally, you can never recognize or reflect it in your financial statements or results, meaning this value can often go unnoticed or unrecognized.
From our experience through our capital recycling program, the value a buyer ascribes to this growth potential can be significant and in many instances actually exceed the value they ascribe to the in place cash flows or business. So to elaborate on what Sam had mentioned earlier, Let's look again at how meaningful the difference can be from an illustrative return perspective. So say we invest in a business and target somewhere between our 12% to 15% target IRRs on an investment. Over that 7 year period, we should realize a multiple of capital of 2 times our money. Now, say we're successful in building a platform around that investment, over the same 7 year period, If we're successful, we should be able to generate returns in excess of 20% annually and more importantly, double the profit and multiple of capital we earn on our day 1 investment.
Now, not only will we generate more proceeds when we sell these businesses, but our results will also benefit as Cost of capital associated with realizing a platform can be significantly lower than a traditional asset sale. So how do we build platform value? Well, we do it in a variety of ways. Many of the elements listed here today our typical Brookfield's asset management approach, including building strong teams and proactively managing our balance sheet. However, the first step in building a successful platform is selecting an asset class with the right growth potential and in the right market.
Now, our local presence in the countries that we invest in, combined with our decades of experience in owning and operating infrastructure assets, uniquely positions us to identify the right growth platforms. Looking at this list here, the important thing to note is that there are few others who have the ability and appetite to do this type of strategy. Now rather than running through the list here, let's use the recent sale of our District Energy platform to demonstrate these value drivers. Many of you will be familiar with our District Energy business, EnWave. Our investment thesis began with identifying that there was a significant opportunity to build a North American sustainable energy platform with scale.
This market is unregulated and was highly fragmented, and as Sam alluded to, makes it the ideal candidate to build a platform around. So in 2012, we acquired the largest geothermal district energy system in Canada. This business Gave us the initial investment that we could leverage for scale as well as future growth opportunities. Now as I said, this market was highly fragmented, which led us to complete a series of tuck in acquisitions across a number of cities in the most densely populated places in North America. This includes Los Angeles, Seattle, Houston, just to name a few.
Now, soon after acquiring the business, we hired a strong management team, Pairing experienced executives with Brookfield grown talent, a strategy you'll see us replicate many times to drive business growth. Now in addition to growing through M and A, we also commercialized the utility, meaning we applied a leasing strategy to promote the economic and environmental benefits that our system provided customers. This change in mindset and culture took many years. And as a result, by the time we were ready to exit, had resulted in a much more proactive approach to growth and business development. Now the culmination of these activities and initiatives led to a significant increase in EBITDA and more importantly resulted in a well attended sales process that allowed us to generate significant shareholder returns.
After agreeing to sell the Canadian business and U. S. Business separately, We were able to achieve a 30 times EBITDA multiple on our exit. Now as Sam alluded to earlier, this raised $1,000,000,000 of net proceeds for BIP, which implied on an AFFO basis an exit yield of under 4%. Most importantly, it resulted in a multiple of our invested capital 6 times.
Now because building platform value can be incremental, it can take time, and as I said, it can go unnoticed. Let's take a look at where we're building these platforms today. Today, we're trying to emulate the returns that we've earned on EnWave across a number of our businesses. Today, we've chosen to highlight only 8 of them. But as opposed to going through each one, I'll group them into 3 broader categories to give you a flavor of what we're doing.
The first would be taking a leading position in a home or domestic market and copying that strategy abroad into higher growth regions. An example of this would be our residential infrastructure business, our North American sub metering business, where we're taking a Canadian's proven strategy and growing into the U. S, the U. K. And more recently Europe.
The 2nd bucket would be those asset classes or businesses where we believe we can generate superior returns by building greenfield developments. What comes to mind here would be our Brazilian electricity transmission systems, as well as our fiber cables our fiber to the home networks globally. And the last category would be those businesses that have scale today that are building into an adjacent or complementary infrastructure asset class. The perfect example of this is our U. K.
Last Mile Connections business. It did this 5 years ago by entering smart meters, which we recently sold. And now today, we've entered the fiber market as well as the water business. Similarly, in our telecom tower portfolio, we're entering indoor systems, leveraging Brookfield's leading real estate portfolio to grow in the U. S, the U.
K, and most recently, India. And the most exciting platform opportunity we probably have in front of us today is on the hyperscale data center business, which Sikander will join us in a few moments to dive a bit deeper into. So based on the visible growth outlook that we have in front of us today, we believe that BIP can deploy over $5,000,000,000 of CapEx into these 8 platforms alone in the next 5 years. As Sam mentioned earlier, and just to build upon a little bit more, these projects provide us and there's little to no competition as we are the incumbent. Now one of the ways that we'll be able to track our progress in building platforms as we go will be through the growth of our capital backlog.
We expect this growth to be significant. Looking back over the last 10 years, you can see we've had a steady increase in our capital backlog as we've built out scale in many of these asset classes. 10 years ago, we averaged about $1,000,000,000 of backlog in our business. Fast forward 5 years, we've averaged around $2,000,000,000 which is roughly where we are today. Now building these 8 platforms alone, we believe we can increase our backlog to over $3,000,000,000 in the next 2 to 3 years if we're successful in our strategies.
Now that backlog growth will certainly help Tell us where and how we're building platform value as we do it, as I said, but I think the truest and most important signal of our success will be the exit multiples we achieve. Continuing on with my earlier example of EnWave, had you looked at consensus street estimates as how that business was valued prior to our sale, you would have seen an EBITDA multiple of roughly 15 times. Now 15 times is a very appropriate EBITDA multiple for a standalone district energy system or a regulated utility. However, you can see it was clearly inadequate for a North American leading district energy platform in which we were able to achieve an exit multiple of twice that. Now, it wasn't the first time that we were able to generate outsized returns through our capital recycling program, and more importantly, it won't be the last.
Using just the businesses we've chosen to highlight today, we have summarized the consensus EBITDA multiples used implicit in our value today versus the platform value we believe we can achieve at exit if successful in building these strategies. These platform values are very achievable in our minds. They're consistent with how many of these smaller portfolios either trade in the public markets today or have transacted it privately in the last year alone. As you can see, there's tremendous value in our business today. If we're able to do our jobs and execute on the strategic priorities within these businesses, we should be able to recreate the previous success that we've had in our capital recycling program over the next 5 years.
In doing this, we'll be able to achieve exit valuations that should be in general 25% to 50% higher than those implicit in our stock price today. Now thank you for your time this morning. I'll now turn the presentation over to Sikander, who will be joining us from London.
Thank you, David, and hi, everyone. My name is Sekhedar Rashid. I've been with Brookfield for almost a decade and currently serve as a managing partner in the firm's London office. Over the last few years, Data centers have become an important segment of our digital infrastructure strategy. If we are successful in executing our plans, We expect to deliver $2,000,000,000 of profit to our investors.
To elaborate on this, today, I will answer 2 key questions. Number 1, why are we excited about data centers? And 2, how are we building a global platform? We're excited about data centers for 2 main reasons. Data centers make a great infrastructure business.
Contracted cash flows, high margins and high barriers to entry for scale platforms. Data centers are also A high growth vertical, by 2024, public cloud revenues are expected to increase $350,000,000,000 At the same time, annual leasing revenues for data center businesses will surpass $50,000,000,000 Today, every minute, that's every 60 seconds, We sent 200,000,000 e mails, 17,000,000 text messages and generate 500 hours of YouTube content. These activities generate 15 1,000,000,000 gigabytes of data annually. All this data needs to be stored, processed and re accessed through data centers. To support the data growth, we need over 6,000 megawatts of data center capacity in the next 3 years alone.
That's a capital requirement of $50,000,000,000 We at Brookfield started observing these trends Several years ago, I realized our 2 investment options were either buy an existing global platform and scale it up or we build our own regional platforms. Valuations for established platforms, absent a catalyst For Rich and the level of goodwill required to acquire these platforms was incredibly high. So we instead focused on a greenfield strategy where we had the conviction to deliver 15% plus returns for investors. So how did we go about it? We acquired a high quality hyperscale data center business with fantastic customer relationships.
We then evaluated other growth markets and added resources in those markets. We also developed strategic partnerships with customers and operators. And once we had this base established, We provided the capital to these businesses to help them scale up. For hyperscale platform, it all started in 2019 when we bought Ascenty in a transaction worth over $2,000,000,000 We like Ascenty at the time for 4 key reasons. It's a scalable business with a great management team.
It was an opportunity to team up with Digital Realty, one of the largest hyperscale global data center operators. The business came with a stable asset base of 36 megawatts of capacity and had a strong growth pipeline. And lastly, The business had great customer relationships with some of the fastest growing technology firms in the world. Let's look at one of our key sites, Ben Hendo, located in the state of Sao Paulo in Brazil. This campus Covers 215,000 square meters of space and has over 70 megawatts of power capacity.
That's enough power to meet the demands of 220,000 households. This business is also 100 percent renewable powered. In 2019, when we acquired Ascenty, it was a Brazilian hyperscale business. Since their acquisition, we have added 7 new locations to the platform and have grown the business to 2 new geographies, Chile and Mexico. As a result of these growth initiatives, today Ascenty is the largest data center business in Latin America.
So let's take a look at the numbers. Today, the business is generating $112,000,000 in EBITDA and has approximately 100 megawatts of capacity. By 2025, We expect the total capacity to be in excess of 300 megawatts, 200 megawatts and total EBITDA to be in excess of $300,000,000 Data privacy laws and enterprise public cloud adoption are creating incredible tailwinds for the data center industry, not just in Latin America, but throughout the world. So with the positive experience at Ascenty And to identify the next set of growth markets, we scan the rest of the world using 4 key criteria. Do we have the local real estate expertise on the ground to identify strategic sites?
Do we have customer relationships Required to commercialize the business, do we have access to development and construction expertise? And lastly, do we have access to renewable power? We appreciate that technology firms who are some of the largest data center customers today have immense power needs, preferably renewable power due to their ambitious carbon neutrality objectives. Our data center capabilities, coupled with our access to renewable power, make us an ideal partner for these firms. So the conclusion of this exercise was that India, Asia Pacific and Europe were the next new high priority markets for Brookfield.
So what did we do next? In India, we moved quickly and replicated our partnership with Digital Realty. India is a fantastic data center market for 3 key reasons. Its high growth, 97% of Indian consumers Access the Internet wirelessly. As a result of that, data consumption by individuals has increased 20 times over the last 5 years.
On the enterprise side, cloud penetration in India is expected to increase from 20% today to 50% in 2025. And lastly, India is a highly fragmented market with no international player of scale operating on the ground. For these reasons, we expect to build our data center business and deploy $1,000,000,000 of capital through this JV, which we're very excited about. Next up, in Asia Pacific, We acquired a portfolio called DCI that had 2 high quality sites in Sydney and Adelaide. At the time of the acquisition, we liked DCI for three key reasons.
At contracted, in place cash flows and the customer base, it's a scalable business in a great market that came with 40 Megawatts of pipeline capacity in Sydney alone. The size of the opportunity in Asia Pacific is massive. Cloud spend as a percentage of IT spend is a fraction of what it is in mature markets. What that means is that there's a huge runway ahead of DCI, and we are on our way already leveraging the DCI platform to acquire strategic sites in Tokyo, South Korea and Singapore. Lastly, Europe remains an amazing growth story as well.
To give you some context, Frankfurt, London, Amsterdam and Paris alone accounted for 3 70 megawatts of capacity in 2021. Brookfield recently closed on a 100 Megawatt project in Amsterdam, which will be the largest and the greenest data center asset in the city of Amsterdam. We see a huge opportunity throughout Europe and are constantly on the lookout for opportunities, not only in the flap market markets, but also elsewhere. So what does a data center platform mean for BIP? David mentioned earlier, we're building platforms in many of our businesses around the globe.
Hopefully, I've been able to provide a real life example of how we're creating platform value for the benefit of our investors. Over the next 5 years, we expect to see EBITDA increase fivefold from where it is today. And more importantly, if we're successful in realizing our data center platform value, we expect to generate $2,000,000,000 of Profits for a bit over the next 5 to 7 years. And this is why we're excited about the sector and expect to tell you a lot more about it in the future. And with that, I'll pass it back to Sam to wrap up the presentation.
Okay. So we're at the end now. Thank you So much for listening to our presentation. And I hope, as far as takeaways, you can appreciate that Our strategy is going to continue to be investing on a value basis where we can, building Platforms, as we've described today, and recycling capital, taking advantage of these markets to improve our cost of capital by selling our business is at great values. And if we do that, we'll continue the business model, the growthility that we've talked about over the last couple of years.
So I'm going to take a couple of questions from the iPad and then I'll take a few from the floor. And the first question I have is from Frederic Bastien. And his question is, BIP mainly acquires infrastructure assets as a second owner, but do you see a need to start investing in greenfield projects or early stage developments as Brookfield Renewable is doing. So I guess that question is appropriate given what we talked about today. I wouldn't say that we are starting because we have for a long time invested in early stage or greenfield businesses.
We had a number of transmission projects in Texas, in Brazil that we literally built from the ground up. I would say that's never been the focus for our business to start with something that's long dated or really that early stage. I'd say most of what we like to do is what, Sikander described or what we described in the past with our BUK business, where we have repeatable small projects that we can continue to execute. Those are ones that have lower risk, a lot more visibility as to the cost and demand outlook. And so I'd say that will be where our focus is as opposed to large scale early stage shell on the ground type projects.
And then The next question is, how do you plan to exit or monetize midstream assets given the transition to renewable energy? And this is from Dmitry Khmelnitsky. I hope I pronounced that okay. So I think The place to start with that question is, when we buy a midstream business, what are we thinking about these days. And the first thing is, and Scott mentioned this, I think, in his presentation, We're not looking to enter into a midstream business that needs to be commercialized.
We're looking to buy assets that are well established, generating cash flow and we're valuing them on a very discrete lifespan, typically between 20 30 years maximum and trying to get our capital back within 5 to 8 years. And so the reliance that we have on terminal value is actually pretty modest. Now having said that, To get attractive values, obviously, we want to get something for the back end. And the opportunity to earn attractive return will be really twofold. One is, these are going to be highly cash generative businesses, And there's always buyers for cash generating businesses.
So to the extent it's got a high yield, we know there'll be a buyer for it. And to the extent that The timeframe has extended farther than what we underwrote, then we'll create value that way. In addition, though, as we mentioned earlier, We think many of these midstream businesses are going to be repurposed. These are going to be the businesses of the future that will transition and help Society moved from a fossil fuel or carbon based society to a renewable one. So We think a lot of these businesses will have that back end and we've paid nothing for that optionality.
So we think there's great opportunity. I have one more question here, but before I go here, because I know I don't have much time, I'll see if there's a question out in the audience. Anything? Okay. So I'll take this question here, then I think we have time for one more.
So historically, You've looked to monetize mature assets, I. E, those where the value is mostly the in place cash flows, Based on highlighting value for an organic growth engine, do you see a greater tilt to sales of segments that are still growing? This is a question from Robert Kwan. So I think the gist of this question is that the life cycle of how we think about when we buy, fix, sell, are we going to move that forward and maybe sell businesses earlier on in their maturation. And I think the What we'll try to do is, no matter what business it is, We're always trying to continue to build a growth story to that entity.
So even if we've completed What we initially underwrote and what we initially set out for, we're always trying to think of new ways to extend the growth profile and the excitement of that entity. And so, I think the main takeaway from our Business platform is to the extent that we can leave something there or leave some excitement for investors, they'll pay us for that excitement, even if it's a bit farther out. And so I think that will be our focus as opposed to what I think the question was, We're going to sell them sooner and maybe the life the amount of time we'll hold an asset will be shorter than it would have been in the past. Think we'll still own assets 7 to 10 years, but we'll just keep on working on generating that growth engine. So I think that's I'm getting the hook.
So I
think that's all we have for today. Thank you very much and look forward to seeing everyone next year.