Key facts
- Berkshire Hathaway CEO Greg Abel sees AI data centers as a significant opportunity for the company's energy business.
- Abel confirmed Berkshire's substantial investment in Alphabet is a bet on artificial intelligence.
- Berkshire Hathaway views electricity access as the next bottleneck in the AI boom.
- The company's Iowa utility already supplies about 8% of its power load to data centers.
- Abel stated Berkshire will only serve new data centers if it does not raise costs for existing customers.
- Abel noted that consumers are strained by inflation and high mortgage rates, with a 'bumpy road' ahead for housing.
Berkshire Hathaway CEO Greg Abel views artificial intelligence data centers as a significant opportunity for the company's energy business, positioning the conglomerate to capitalize on what he described as the AI boom's next bottleneck: electricity access. Abel confirmed that Berkshire's substantial investment in Google parent Alphabet, now valued at approximately $38 billion, was initiated last year as a strategic bet on AI.
Abel highlighted that Berkshire's operator mindset extends to its energy utilities, which supply crucial infrastructure for the AI buildout. Its Iowa utility, for instance, already derives about 8% of its power load from data centers. However, Abel emphasized a key condition: Berkshire will only serve new data centers if doing so does not increase power costs for its existing customers. This stance addresses the challenge of balancing AI demand with customer and regulatory considerations.
Beyond the AI focus, Abel acknowledged broader economic headwinds, noting that consumers are strained by inflation and high mortgage rates, and the housing market faces a 'bumpy road.' Despite these challenges, Berkshire's recent acquisition of homebuilder Taylor Morrison signals a long-term investment strategy, with Abel expecting the company to become a 'very strong asset' within five to 10 years.