Berkshire Hathaway CEO Greg Abel has sounded the alarm on increasing community resistance to the construction of data centers across the United States, highlighting a growing trend that could impact the rapidly expanding sector.
Speaking to CNBC's Becky Quick, Abel stated, "There is a lot more pushback in the communities across the U.S.," indicating that local opposition is becoming a significant factor.
Berkshire Hathaway's primary interest in the booming data center industry lies in its power and electricity demands. Abel emphasized the company's willingness to partner with supercomputing firms, provided they can manage their operational costs without negatively affecting the electricity rates for existing customers.
"We are interested in serving these hyperscalers ... if there was no impact to the rates of our other customers," Abel said.
Wall Street analysts and investors have taken note of this burgeoning opposition. Concerns are mounting over the strain that large-scale data center projects can place on local power grids and water resources. This sentiment is reportedly gaining traction, with some analysts suggesting it could become a point of discussion in the upcoming midterm elections.
The regulatory landscape is also shifting, with New York State implementing a moratorium on new data center construction. Numerous other states are considering or have already enacted various levels of restrictions and bans, reflecting the growing unease surrounding these facilities.
Currently, the U.S. hosts approximately 4,700 data centers, a number that continues to climb. Analysts at Mizuho recently pointed out that the upcoming midterm elections could amplify concerns, as some investors are questioning the long-term viability and community impact of these projects, particularly regarding job creation and resource consumption.
Video: Berkshire CEO Greg Abel: There is ‘a lot more pushback’ on data center construction across the U.S.
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