Berkshire Sees Energy Opportunity in AI Data Centers
Berkshire Hathaway CEO Greg Abel sees significant opportunities for the conglomerate's energy business due to the growth of AI data centers.
In an interview on CNBC, Abel stated that Berkshire views Google parent Alphabet as a 'significant player' in AI and has invested $10 billion in the company through two separate investments, with the most recent one made at a 6.5% discount to Alphabet's stock price.
The investment was authorized by Abel and Berkshire Chairman Warren Buffett after the conglomerate made Alphabet its third-largest common stock holding last year.
Abel believes that AI growth will lead to increased electricity demand, benefiting Berkshire's energy business, which is based in Iowa. He estimates that about 8% of Iowa's load came from data centers last year.