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Berkshire’s Early Power Bets Gain Relevance In AI Boom
Artificial intelligence systems need very large data centers to work.
Those data centers use huge amounts of electricity.
Berkshire Hathaway already owns businesses that produce and provide power.
This means the company may benefit from the AI boom without owning many popular AI technology stocks.
Its Iowa utility reported that data centers made up 8% of its energy load last year.
Berkshire also owns Precision Castparts, which makes industrial components.
Warren Buffett made these investments before AI became widely popular.
He has since stepped down as chairman, and Greg Abel leads the company as chief executive.
Berkshire Hathaway’s energy investments predated the current artificial intelligence boom.
Its utilities, including MidAmerican Energy and NV Energy, could benefit as data centers consume more electricity.
Greg Abel said data centers accounted for 8% of Berkshire’s Iowa energy load last year.
Berkshire’s Precision Castparts may benefit from broader investment in power-generation infrastructure.
Warren Buffett stepped down as Berkshire’s chairman, while Greg Abel became chief executive in 2025.
- Who
- Berkshire Hathaway, Warren Buffett, Greg Abel, and the company’s energy and industrial businesses.
- What
- Berkshire’s earlier investments in power infrastructure and industrial suppliers may benefit from rising electricity demand linked to artificial intelligence.
- Where
- Berkshire’s utility operations include Iowa, MidAmerican Energy, and NV Energy.
- When
- The investments were made before the current AI boom; Greg Abel reported the Iowa data-center figure at Berkshire’s annual conference in May, and Buffett stepped down as chairman in 2025.
- Why
- AI data centers require enormous amounts of reliable electricity, along with construction, equipment, and other physical infrastructure.
Key facts
- Company
- Berkshire Hathaway
- Key utilities
- MidAmerican Energy and NV Energy
- Iowa data-center load
- 8% of Berkshire’s Iowa energy load last year
- Industrial business
- Precision Castparts manufactures aircraft-engine and other industrial components
- Berkshire CEO
- Greg Abel took over as chief executive in 2025
- Chairman transition
- Warren Buffett became chairman emeritus, while Howard Buffett became non-executive chairman
- AI infrastructure need
- Data centers require substantial electricity, land, construction, equipment, and reliable power
Quotes
Ken Mahoney
President and CEO of Mahoney Asset Management
“He has long understood that you need to own companies that the economy simply cannot function without. Sometimes in business, boring is what makes the most consistent profits.”
livemint.com
Sources
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