Berkshire’s Abel says data centers are energy opportunity

Investing.com -- Berkshire Hathaway's Chief Executive Greg Abel said Wednesday the company sees opportunities for its energy business from the expansion of AI data centers, following the conglomerate's $10 billion additional investment in Alphabet three months ago.

Abel told CNBC that he and Chairman Warren Buffett authorized the new investment in Google's parent company, which has become Berkshire's third-largest common stock holding. He described Google as a "significant player" in AI, which influenced the investment decision.

"We are all seeing and feeling the impact" of AI, Abel said.

Buffett started Berkshire's position in Alphabet last year. Abel said he executed the recent $10 billion purchase at a 6.5% discount to Alphabet's stock price.

Abel said Berkshire's energy unit could benefit from AI growth due to the electricity requirements of data centers. In Iowa, where Berkshire Hathaway Energy operates, approximately 8% of its load came from data centers last year, he said.

"I've sort of always had the strong view that energy would be the constraint," Abel said. "We do still see it as a significant opportunity for Berkshire and Berkshire Hathaway Energy."

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