Berkshire CEO Abel sees opportunity for energy business from AI

Berkshire CEO Abel sees opportunity for energy business from AI NEW YORK, Sep 2 : Berkshire Hathaway Chief Executive Greg Abel said on Wednesday he sees significant opportunities for the conglomerate's energy business from the buildout of AI data centers, after Berkshire made Google parent Alphabet its third-largest common stock holding. Speaking on CNBC, Abel said he viewed Google as a "significant player" in AI, a factor that prompted him and Berkshire Chairman Warren Buffett to authorize an additional $10 billion investment three months ago. "We are all seeing and feeling the impact" of AI, Abel said. Buffett initiated Berkshire's investment in Alphabet last year, though Abel took credit for making the new investment at a 6.5 per cent discount to Alphabet's stock price. Abel said Berkshire's energy business could also benefit from AI growth, given the amount of electricity needed to run data centers. He estimated that in Iowa, where Berkshire Hathaway Energy is based, about 8 per cent of its load came from data centers last year. "I've sort of always had the strong view that energy would be the constraint," Abel said. "We do still see it as a significant opportunity for Berkshire and Berkshire Hathaway Energy."