Markets · NY Daily Wire
Berkshire Hathaway (BRKA, BRKB) CEO Greg Abel joined CNBC's 'Squawk Box' from Tokyo to discuss the company's energy operations, particularly its stance on AI data centers. Abel outlined conditions for serving hyperscalers: the projects must not increase rates for other customers. He explained that Berkshire operates on principles of shared benefits, having communicated these with regulators and stakeholders.
"We are interested in serving these hyperscalers... if there was no impact to the rates of our other customers," Abel said. "There has to be a net benefit to our customers." Beyond rate neutrality, the company focuses on community acceptance, including water usage impacts and local support for data centers. Iowa serves as a model, where data centers accounted for 8% of utility load in 2025, with growth expected.
Berkshire’s U.S. utilities saw a 38% year-over-year increase in after-tax earnings in Q2 2026, driven by higher retail volumes and utility margins. Capital expenditures totaled $6.7 billion in the first half of 2026, with $8.6 billion more planned for the remainder of the year. This spending supports regulated utility growth, as projects that meet Berkshire’s criteria expand the company’s revenue base.
Abel acknowledged community pushback as a potential challenge but noted no projects have been rejected yet. His conditions—ensuring no cross-subsidization and community support—position Berkshire as a favorable partner for data center development. Iowa’s property tax contributions further incentivize local acceptance.
Ultimately, Abel’s approach may mitigate resistance, as regulators and communities see clear benefits from Berkshire’s model.
Source: The Motley Fool
