Berkshire Hathaway Inc. (NYSE:BRK)(NYSE:BRK) CEO Greg Abel spoke in a TV interview Wednesday about growing pushback against data centers and the opportunity the company sees in helping power their expansion. Here’s where Berkshire Hathaway fits into the AI data center boom.
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Berkshire’s Data Center Opportunity
Warren Buffett is no longer the CEO of Berkshire Hathaway, leaving the everyday control and decisions in the hands of new CEO Greg Abel.
Among the decisions facing Abel is where to lean in the battle over data centers. During an interview with CNBC, Abel laid out the priorities for Berkshire Hathaway when it comes to data center growth.
Abel, who previously led the Berkshire Energy unit of the conglomerate, said he has long believed that energy is a key constraint to data centers being built out, something that Berkshire can help with.
"We do still see it as this significant opportunity for Berkshire and Berkshire Energy," Abel told CNBC.
The Berkshire Hathaway CEO said the company has received customer requests on helping with the energy aspects of data centers. Abel believes that 8% of the company’s energy load in Iowa last year came from data centers.
Berkshire Energy operates several electric utility companies, including PacifiCorp, MidAmerican Energy Co and NV Energy that cover regions of the U.S. such as the western portion; Midwest states like Iowa, Illinois and Nebraska, and Nevada.
Abel also said that Berkshire is interested in serving hyperscalers, a list that could include Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL). The Berkshire CEO also commented on the company’s investment in Alphabet shares during the interview.
In the second quarter, Berkshire increased its stake in Alphabet Class A shares (GOOGL) by 45% and Class C shares (GOOG) by 658%. The two stocks were the third and 10th largest assets, respectively, in the company’s stock investment portfolio.
Handling Data Center Pushback
Berkshire Hathaway has several principles when it comes to data center partnerships and help, Abel said.
Among the principles are making sure there is no impact on the rates of existing customers, an understanding of the impact on water and communities being open to a new data center build.
"There is a lot more pushback in the communities," Abel said, adding, "There has to be a net benefit to our customers."
Abel said the narrative around data centers is starting to change and used the example of some of the positive developments from areas in Iowa that have data centers.
The Berkshire Hathaway CEO said data centers in Iowa are providing tax relief to lower property taxes and bringing in revenue that supports schools, police departments and fire departments.
"That equally has to be part of the narrative and make sure people recognize the benefits that come with that type of development."
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