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Berkshire sees AI data centers boosting energy demand and growth
CEO Greg Abel said data centers already contributed about 8% of Berkshire Hathaway Energy’s load in Iowa last year.
Berkshire Hathaway CEO Greg Abel said on CNBC that the buildout of AI data centers could create significant opportunities for the conglomerate, and he tied that growth to rising electricity needs for AI infrastructure.
Abel said Alphabet is a “significant player” in AI and cited Berkshire’s recent increase in exposure, including an additional $10 billion authorized about three months ago to help Alphabet and YouTube build AI infrastructure. He also said Berkshire ended June with nearly 106 million Alphabet shares worth about $37.8 billion.
Abel added that Berkshire Hathaway Energy could benefit from the power requirements of data centers and estimated that in Iowa, about 8% of its load came from data centers last year, describing energy as a potential constraint but also a major opportunity.
Separately, Abel said American consumers remain under stress from elevated inflation and mortgage rates, calling the housing outlook a “bumpy road.” He pointed to single-family housing starts falling in July to the lowest level since November 2022, and said Berkshire did not see signs of immediate recovery in housing, speaking to higher mortgage rates and economic uncertainty.