Berkshire CEO Greg Abel: Iowa Data Centers Won't Hike Your Power Bills

Berkshire Hathaway CEO Greg Abel made one thing clear this week: the company wants to power the AI data center boom, but not at the expense of everyday Iowans who rely on MidAmerican Energy. Speaking with CNBC from Tokyo, Abel detailed the conditions Berkshire has set for serving the hyperscalers, the giant cloud companies building massive data centers across the country.

Abel, who took over from Warren Buffett in January after years running Berkshire's energy operations, said the company's approach has been consistent from the start. The message has been shared directly with hyperscalers, governors, and state regulators.

“We are interested in serving these hyperscalers ... if there was no impact to the rates of our other customers,” Abel said. “And in fact, we've pretty much taken the approach. There has to be a net benefit to our customers.”

What conditions does Berkshire require for data center projects?

Abel outlined three key conditions for any data center project. First, existing customers must see no rate increases, and ideally a net benefit. Second, the community must understand and accept the project's water usage, which Abel noted has become much more manageable as the industry limits consumption. Third, the host community must actually want the facility there.

That last point is increasingly important. Abel acknowledged growing resistance to data center projects across the United States.

“There is a lot more pushback in the communities across the U.S.,” he said.

Why Iowa is the model for data center growth

Iowa is ground zero for Berkshire's strategy. Data centers accounted for about 8% of MidAmerican Energy's load in the state last year, Abel said, with more growth on the horizon.

The numbers back up the approach. After-tax earnings at Berkshire's U.S. utilities jumped 38% in the second quarter compared to a year earlier, reaching $597 million. Retail volumes across those utilities were up about 3% through June, with MidAmerican leading the way at 6% growth.

Abel also highlighted a benefit often overlooked in the data center debate: property taxes. In Iowa, these projects are a substantial source of funding for schools and local services.

Has community pushback stopped any Berkshire projects?

Not yet. Abel said Berkshire has not lost a single energy-infrastructure site to community opposition, and construction continues on all fronts. The rate condition is a big reason why. A utility that can tell regulators the hyperscalers won't be subsidized by other customers' power bills is a harder target for resistance.

That said, Abel flagged the community reaction as a challenge on top of the broader energy constraints. A moratorium in the wrong state or a community that says no could still stall a project regardless of the terms.

What does this mean for Berkshire's growth and Iowa's economy?

Berkshire is putting serious money behind this strategy. Of the company's $10.6 billion in first-half capital expenditures, $6.7 billion went to the energy business and BNSF railroad, with about $8.6 billion more forecast for the rest of 2026.

For a regulated utility, that spending is the growth. Rates are largely set to recover costs plus a return on invested capital, so every data center project that clears Abel's bar grows the base the company earns on.

The second quarter's 38% earnings jump got help from production tax credits, and comparisons may get tougher from here. But Abel's rate condition is less a limit on the growth case than the substance of it. Berkshire is qualifying load it can serve for decades in states that want it there, and it is putting billions of dollars behind projects regulators have little reason to fight.

For Iowa, the takeaway is straightforward: data center growth can continue without hitting your pocketbook. Abel's conditions ensure that the hyperscalers pay their way, communities get a say, and existing customers see no harm. That is a model worth watching as the AI build-out accelerates.

Frequently asked questions about Berkshire and Iowa data centers

Will data centers raise electricity rates for Iowa residents?

No, according to Greg Abel. Berkshire's stated condition for serving hyperscalers is that there be no impact on rates for other customers, and ideally a net benefit.

How much of Iowa's electricity load comes from data centers?

Data centers accounted for about 8% of MidAmerican Energy's load in Iowa last year, and that share is expected to grow.

Do data centers benefit Iowa communities?

Yes, according to Abel. Property taxes from data center projects are a substantial source of funding for Iowa schools and local services.