Business & Finance
Berkshire CEO Greg Abel notes rising community pushback against data center construction
Conglomerate's interest in powering facilities depends on protecting existing utility customers from higher electricity rates.
The short version
- Berkshire Hathaway CEO Greg Abel stated that communities across the United States are increasingly resisting data center projects.
- Abel noted Berkshire is willing to supply power to hyperscalers only if it does not increase utility rates for existing consumers.
- State and local governments are introducing restrictions, including a construction moratorium in New York, amid concerns over resource use and limited long-term employment.
Key facts
- Berkshire Hathaway CEO Greg Abel stated in an interview that U.S. communities are demonstrating increased resistance to data center construction.[CNBC]
- Abel said Berkshire's primary interest in the buildout is generating power for hyperscalers, provided the projects do not impact electric rates for existing utility customers.[CNBC]
- There are approximately 4,700 data centers currently operating in the U.S.[CNBC]
- New York State has enacted a moratorium on data center construction, and several other states are considering pending restrictions and bans.[CNBC]
- Analysts at Mizuho noted that investors see data center resource consumption and modest long-term job growth as emerging political issues ahead of the midterm elections.[CNBC]
What remains uncertain
- The potential scope and passage of pending state-level bans and restrictions across the U.S. remains undetermined.[CNBC]