Berkshire Hathaway Bets Big on AI Energy Demand and Alphabet (GOOGL) Stock

TLDR

• Berkshire Hathaway CEO Greg Abel says AI data centers are a major opportunity for the company’s energy business
• Berkshire Hathaway Energy currently gets about 8% of its electrical load from data centers in Iowa
• Berkshire recently invested an additional $10 billion in Alphabet, making it the company’s third-largest stock holding
• Abel took credit for the Alphabet investment, made at a 6.5% discount to the stock price
• Abel says the energy business will only serve AI hyperscalers if it does not raise rates for existing customers

Berkshire Hathaway CEO Greg Abel says the company sees opportunity in the growing power needs of AI data centers. He also revealed that Berkshire made a fresh $10 billion investment in Alphabet, Google’s parent company.

Alphabet Inc., GOOGL

Abel spoke about both topics in a CNBC interview on Wednesday, September 2.

Berkshire Goes Bigger on Alphabet

Berkshire Hathaway has made Alphabet its third-largest common stock holding after adding $10 billion to its position about three months ago.

Warren Buffett first started buying Alphabet shares last year. Abel said he and Buffett jointly authorized the follow-on investment.

Abel said the purchase was made at a 6.5% discount to Alphabet’s stock price at the time. He called Google a “significant player” in AI, which was a key reason for adding to the position.

“We are all seeing and feeling the impact of AI,” Abel told CNBC.

Energy Business Eyes Data Center Growth

Abel said Berkshire Hathaway Energy is in a strong position to benefit from the electricity demands of AI infrastructure.

The subsidiary serves around 13 million customers and end-users globally. In Iowa, where the unit is based, data centers made up around 8% of its electrical load last year.

Abel said he has long believed energy supply would be the key limiting factor in the AI buildout.

“I’ve sort of always had the strong view that energy would be the constraint,” he said.

Berkshire Hathaway Energy is open to supplying power to AI hyperscalers, which are large cloud and data center operators. However, Abel set a clear condition.

The company will only pursue those deals if existing customers do not see higher rates as a result.

Abel described the data center energy market as a real opportunity for both Berkshire and its energy subsidiary going forward.

Berkshire Hathaway has not named specific hyperscaler clients or disclosed deal timelines at this stage.

The company continues to operate as one of the largest energy providers in the United States, with its Iowa base making it well-placed for data center expansion in the Midwest.

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