Berkshire Hathaway CEO Greg Abel highlighted growing local opposition to data center developments across the United States during a Wednesday morning interview. Abel noted that communities nationwide are increasingly resisting these large-scale computing projects.
Abel remarked that the company's interest in current computing facility ventures is primarily tied to power supply and electricity generation at these sites. He emphasized that Berkshire Hathaway aims to work with supercomputing firms, provided they maintain effective cost controls. "We're interested in serving these hyperscale players... as long as it doesn't impact rates for our other customers," he stated.
Wall Street investors and analysts echo Abel's observations, pointing to a growing number of organized political campaigns against large computing developments that could strain local natural resources. New York State has already enacted a moratorium on data center construction, while numerous other states have pending restrictions and bans at various stages.
The United States currently hosts approximately 4,700 data centers, with the number continuing to rise. Analysts at Mizuho Bank flagged in a Tuesday client note that investors view data centers as a potentially significant issue in the upcoming midterm elections. Mizuho's Vikram Malhotra wrote on Tuesday that "this is clearly an evolving situation, with some investors raising questions about the upcoming midterm elections, narratives around resource consumption, and limited long-term job creation."
Greg Abel's comments suggest that community resistance could become a key challenge for the industry's rapid expansion, particularly as energy demands and environmental concerns take center stage in public discourse.