Berkshire Hathaway CEO Greg Abel said hyperscalers and data centers must bear the full cost of the electricity they consume [1].

This position addresses a growing tension between the massive energy demands of artificial intelligence infrastructure and the stability of residential utility rates. If the costs of upgrading the power grid for industrial users are passed to the general public, ordinary consumers could face significant price hikes.

Speaking at the 2026 Berkshire Hathaway annual shareholders meeting in Omaha, Nebraska, Abel said there is a need to separate industrial energy expenses from those of the average consumer [1]. He said that the entities driving the demand for increased power must be the ones to pay for it.

"The hyperscalers, the data centers, and the users of energy – they have to bear the full cost," Abel said [1].

Berkshire Hathaway holds significant interests in energy utility companies, making Abel's stance a critical indicator of how the conglomerate intends to manage the surge in power demand. The shift toward high-density computing has placed unprecedented pressure on existing electrical grids, requiring costly infrastructure upgrades to maintain stability [2].

Abel said that this financial responsibility should not fall on the average ratepayer [2]. By isolating these costs, utility providers can ensure that the expansion of the digital economy does not create an unfair financial burden on residential households.

"Hyperscalers must shoulder the entire electricity bill for their data centers, not the average ratepayer," Abel said [2].

The discussion occurs as the industry grapples with the scale of energy required to sustain large-scale AI operations. While tech giants continue to build expansive data center campuses, the funding for the necessary power generation and transmission remains a point of contention between corporations and regulators [2].

“The hyperscalers, the data centers, and the users of energy – they have to bear the full cost.”

This stance signals a potential shift in how utility companies will structure contracts with Big Tech. If industrial users are forced to internalize the full cost of grid upgrades and energy consumption, it could increase the operational expenses for AI companies while preventing a political backlash from residential consumers facing rising utility bills.