Berkshire CEO Abel: AI data center power only if rates unharmed

Greg Abel, who succeeded Warren Buffett as CEO in January, brings deep energy expertise to Berkshire's AI data center strategy. His comments suggest a deliberate approach: supplying power, not owning data centers, and only on terms that protect other customers from rate increases. This stance appears designed to defuse community resistance, which Abel says is growing across the U.S. He notes that in Iowa, property taxes from data centers fund schools and local services, which could help win community support.

Berkshire's energy business is a bright spot, with earnings at its U.S. utilities rising 38% year over year in Q2. The company is investing heavily, with $6.7 billion in first-half capital expenditures attributed to energy and BNSF railroad, plus plans for about $8.6 billion more in 2026. This capital spending is critical for regulated utilities, as rates are set to recover costs plus a return on invested capital.

The key question is whether Berkshire can sustain this growth amid community backlash and tougher comparisons. Abel's rate condition may actually be a strength, as it makes projects more defensible with regulators. However, a moratorium in a key state or a community rejection could still stall projects. Ultimately, the growth case depends on maintaining community and regulatory support while continuing to deliver net benefits to existing customers.