Abel: Two ways Berkshire hopes to cash in on AI

Berkshire Hathaway CEO Greg Abel, in a CNBC "Squawk Box" interview, detailed the company's strategy for capitalizing on artificial intelligence opportunities. Abel outlined two primary paths: providing energy to the expanding number of AI data centers through Berkshire Hathaway Energy and a significant investment in Alphabet, Google's parent company.

Abel emphasized that the availability of energy remains the biggest constraint for data center buildout, which he sees as a "significant opportunity" for Berkshire Hathaway Energy. He affirmed that the company would only supply energy to hyperscalers if there was "no impact to the rates of our other customers," aiming for a net benefit. He also acknowledged the increasing community pushback against data center construction across the U.S., stressing the need for developers to address concerns such as water usage by employing minimizing technologies, making data centers "welcomed members of the community."

Using Iowa as an example, where Berkshire operates substantial utilities, Abel highlighted that data centers have provided "very, very substantial" tax relief for residents and generated revenues supporting local services like schools, police, and fire departments. He argued that these benefits must be an integral part of the narrative surrounding data center development. Regarding Berkshire's investment in Alphabet, Abel explained that it was initiated by Warren Buffett and expanded through a $10 billion purchase to fund Google's "world-class AI compute infrastructure."