Greg Abel, CEO of Berkshire Hathaway, said utility companies will experience significant growth due to the buildout of data centers [1].

This projection highlights a critical intersection between the rapid expansion of digital infrastructure and the physical energy grid. As companies scale their computing power to support new technologies, the resulting surge in electricity demand creates a direct revenue opportunity for the energy sector.

Abel said these insights during the Berkshire Hathaway annual meeting on May 2, 2026 [1]. He said that the construction of data centers is a primary driver for this anticipated growth, a trend that aligns with the company's broader capital allocation strategy.

The relationship between data centers and utilities is becoming more pronounced as the scale of these facilities increases. Data centers require immense amounts of power for both server operation and cooling systems, which places a higher load on existing electrical grids [2].

Berkshire Hathaway has long maintained a significant presence in the energy sector through its various holdings. By identifying data center growth as a catalyst, Abel said that the company views the energy transition not just as a challenge of sustainability, but as a commercial opportunity [3].

This growth trajectory is expected to persist as more organizations move their operations to the cloud and integrate complex artificial intelligence systems [2]. The demand for reliable, high-capacity power is no longer just a requirement for industrial manufacturing, but a necessity for the modern digital economy [3].

Abel said that the company's approach to capital allocation remains aligned with the interests of its owners and shareholders [4]. This strategy involves positioning the firm to benefit from long-term structural shifts in the U.S. economy, such as the increasing electrification of the tech sector.

“Utilities will see big growth from data center buildouts”

The focus on utility growth suggests that the 'AI boom' is moving beyond software and chips into the physical infrastructure layer. For investors and policymakers, this indicates that the limiting factor for digital expansion may shift from hardware availability to the capacity of the electrical grid, potentially leading to increased investment in power generation and distribution.