Berkshire Hathaway Inc. (NYSE:BRK.B) CEO Greg Abel told CNBC’s Becky Quick on September 2 that “there is a lot more pushback in the communities across the U.S.” against new data center construction.
Abel said Berkshire’s role in the AI buildout centers on supplying power through Berkshire Hathaway Energy rather than building the facilities themselves, and that the company will only serve large computing customers on the condition that existing customers’ rates are not affected. The U.S. currently hosts roughly 4,700 data centers, and the backlash Abel described has been building for months: New York became the first state to impose a one-year moratorium on large new data center construction; at least 11 states have similar movements underway; electricity bills near major data center hubs have climbed as much as 267% over five years. Moreover, data centers now account for 4% to 5% of all U.S. electricity consumption.
Mizuho analyst Vikram Malhotra flagged data centers as a likely defining political issue heading into the midterms. Abel separately said he views grid capacity and permitting timelines, not chips or capital, as the real constraint on the AI buildout, noting data centers already make up about 8% of Berkshire Energy’s load in Iowa.
Bull Case
Berkshire Hathaway Inc. (NYSE:BRK.B)’s exposure could help it avoid the worst of the data-center backlash. Rather than building or owning data centers directly, Berkshire sells power to them through its regulated utility business. Abel’s commitment to avoiding rate increases for existing customers could also shield the core utility business from some political pressure.
Abel sees grid capacity as the key long-term constraint on AI expansion, rather than chips or capital. That view favors Berkshire’s power-generation and utility infrastructure businesses, which could benefit from rising electricity demand regardless of which AI companies ultimately lead the market.
Berkshire also gains direct AI exposure through its equity portfolio. The company added roughly $24 billion to its Alphabet position in the second quarter, including a $6.5 billion direct placement at a discount. Alphabet expects to spend $175 billion to $185 billion on AI capital projects in 2026, giving Berkshire exposure to continued AI infrastructure investment.
Abel has also highlighted the economic benefits that data centers can bring to local communities. He pointed to Iowa facilities that provide tax revenue and help fund schools, police and fire departments. Those examples could help Berkshire address community concerns and strengthen its case for future data-center projects.
Bear Case
Growing opposition to data-center construction could make Berkshire Hathaway Inc. (NYSE:BRK.B)’s expansion plans harder to execute. Electricity bills near major data-center hubs have risen as much as 267% in five years. New York has enacted a construction moratorium, and at least 11 other states have similar efforts underway. Hence, political pressure could increase as communities push back against higher power costs and infrastructure demands.
Abel’s commitment to protecting existing customers could also limit Berkshire Energy’s growth. Refusing projects that would raise rates for current customers protects the utility’s existing customer base. But it also prevents Berkshire from pursuing projects that require higher rates to support new infrastructure.
Berkshire may need years to turn rising AI power demand into meaningful revenue growth. Abel identifies site preparation and grid connections as major constraints. Those processes can take years to complete. Permitting challenges and community opposition could extend those timelines further.
Berkshire also faces a leadership transition as Greg Abel takes over capital allocation decisions. Investors now need to assess a data-center and energy-infrastructure strategy under new leadership rather than Buffett’s decades-long record. That transition could increase uncertainty around Berkshire’s capital allocation decisions as Abel establishes his approach.
Hedge Fund Data
Insider Monkey’s database shows Berkshire Hathaway Inc. (NYSE:BRK.B) was held by 135 hedge funds in the second quarter of 2026, up from 126 in the first quarter. NextEra Energy, a utility peer also positioned to benefit from data center power demand, was held by 80 funds, up from 74.
Conclusion
Berkshire’s utility operations and Alphabet investment give the company multiple ways to benefit from rising AI infrastructure demand. But growing opposition to data centers, lengthy grid-development timelines, and leadership changes could limit the opportunity. Investors should look at whether Abel can expand Berkshire’s energy exposure while protecting existing customers and maintaining disciplined capital allocation.
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