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Berkshire Hathaway CEO Greg Abel Highlights Rising Community Opposition to Data Centers
Technology Services · Internet Software/Services · cnbc · 2026-09-02
BRK.B, BRK.B
Berkshire Hathaway CEO Greg Abel warns that local resistance to data center construction is intensifying across the U.S. due to resource consumption concerns.
What Happened
Community Resistance and Regulatory Hurdles: Berkshire Hathaway CEO Greg Abel reports a significant increase in local pushback against the development of new data centers across the United States. This growing opposition is manifesting in legislative actions, including a construction moratorium in New York and various pending restrictions in other states.
Infrastructure and Utility Implications: Berkshire Hathaway’s interest in the data center boom is primarily focused on the energy sector, specifically power generation for these high-demand facilities. Abel emphasized that the company is willing to partner with hyperscalers only if such projects do not negatively impact utility rates for their existing customer base.
Political and Economic Scrutiny: Analysts at Mizuho suggest that data center expansion is becoming a contentious issue ahead of midterm elections. Investors are increasingly questioning the long-term economic benefits of these facilities, particularly regarding their heavy consumption of local natural resources and limited job creation potential.
Market Sentiment and Future Outlook: The rapid growth of the U.S. data center market, which currently includes approximately 4,700 facilities, is facing a critical inflection point. As political and environmental scrutiny intensifies, the industry must navigate a more complex regulatory landscape that could influence future investment and infrastructure deployment.