Berkshire Hathaway Sees Data Centers as Tax-Relieving Opportunity

Berkshire Hathaway's new CEO Greg Abel sees data centers as a significant opportunity for the company, citing their potential to provide tax relief and support local communities. In an interview with CNBC, Abel mentioned that data centers in Iowa are already providing benefits to schools, police departments, and fire departments through increased property taxes.

Abel stated that Berkshire Hathaway has received requests from customers seeking help with the energy aspects of data centers, which he believes can be addressed by the company's energy unit. He noted that 8% of the company's energy load in Iowa last year came from data centers, and expressed interest in serving hyperscalers, including Alphabet Inc.

Abel emphasized the importance of ensuring a net benefit to customers when developing new data center partnerships, adding that there has been growing pushback against data centers in communities. He highlighted some positive developments from areas in Iowa with data centers, stating that they are providing tax relief and bringing in revenue that supports local services.

Abel also mentioned that Berkshire Hathaway increased its stake in Alphabet Class A shares by 45% and Class C shares by 658% in the second quarter, making them the third and tenth largest assets in the company's stock investment portfolio.