After Berkshire made Google parent Alphabet (GOOGL.O) its third-largest common stock holding, Chief Executive Greg Abel stated on Wednesday that he sees substantial opportunities for the conglomerate’s energy business from the construction of AI data centers.
In an interview with CNBC, Abel stated that he saw Google as a “significant player” in AI, which led him and Berkshire Chairman Warren Buffett to approve an extra $10 billion investment three months ago.According to Abel, “we are all seeing and feeling the impact of AI.”
Although Abel claimed credit for making the new purchase at a 6.5% discount to Alphabet’s stock price, Buffett started Berkshire’s investment in the company last year.
Given the quantity of electricity required to operate data centers, Abel said Berkshire’s energy division might also profit from AI expansion.
According to his estimation, data centers accounted for around 8% of Berkshire Hathaway Energy’s load in Iowa last year.”I’ve kind of always believed that energy would be the limit,” Abel remarked. “We do still see it as a significant opportunity for Berkshire and Berkshire Hathaway Energy.”
