Berkshire Hathaway CEO Greg Abel Calls AI Data Center Demand a Significant Opportunity for Berkshire Energy. Here's What That Means for the Stock.
Key Points
Greg Abel joined Berkshire Hathaway when it acquired MidAmerican Energy, and he led its energy business before becoming vice chairman.
He sees a wide opportunity in servicing data centers.
This is another way the company is exposed to AI, in addition to its large position in Alphabet.
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Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) CEO Greb Abel may be taking a new approach to technology for the famed holding company. Former Berkshire Hathaway CEO Warren Buffett has said in the past that tech isn't his wheelhouse, but even he has recognized that there are opportunities in tech as it gains a foothold in the U.S. economy. Today, those opportunities abound in artificial intelligence (AI) companies.
Berkshire Hathaway is a lot more than the equity portfolio that fans follow. It owns around 200 companies of all types, including insurance (GEICO), footwear (Brooks), and energy (Berkshire Hathaway Energy). Here's how data centers could be a serious source of growth for the holding company.
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Data centers are all about energy
Greg Abel joined Berkshire Hathaway as an energy executive when it acquired a majority stake in MidAmerican Energy in 1999. Buffett was very excited about him and was ready to invest in Berkshire Hathaway's energy business once he was on board. Abel was tapped to become CEO of BHE before being promoted to vice chairman of the non-insurance operations in 2018, so energy is his game.
Berkshire Hathaway CEO Greg Abel. Image source: Getty Images.
In a recent interview with CNBC, Abel noted that energy scarcity is what's holding back AI development, and that data centers are a "significant opportunity for Berkshire and Berkshire Hathaway Energy." He said, though, that Berkshire Hathaway Energy wouldn't sell to superscalers if it would raise rates for its other customers.
Many energy companies have experienced rapid growth as data centers proliferate. Bloom Energy, for example, was recently inducted into the S&P 500 after it reported a 166% year-over-year increase in revenue in the second quarter, and its stock is up 220% over the past year.
Berkshire Hathaway doesn't publicly report financials for its subsidiaries, but it does break out some of its businesses, including BHE. BHE reported $891 million in operating income in the second quarter of 2026, a 27% year-over-year increase, but it was the lowest among the reported segments. Total operating income was $13 billion, indicating BHE remains a significant player. If it benefits from data center demand, that number could rise substantially and make a much bigger impact on Berkshire's total.
Other AI bets
Abel hasn't made any significant changes to Buffett's approach, and his first major move as CEO was acquiring homebuilder Taylor Morrison, a typical Buffett-type bet on housing. However, with Buffett's influence, Berkshire Hathaway has built up a significant stake in Alphabet. That's not a pure-play AI investment, but AI has become a major component of Alphabet's business, with strong growth in Google Cloud and Gemini AI.
Both data center energy and the Alphabet position could provide some growth juice for Berkshire Hathaway, and one can expect that to be reflected in positive investor sentiment.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, and Bloom Energy. The Motley Fool has a disclosure policy.
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