Berkshire Hathaway's CEO is warning of a data center backlash spreading across the U.S.

Free daily briefing on global business news.

Greg Abel told CNBC that Berkshire will serve hyperscalers only if doing so doesn't raise costs for its existing utility customers

Bloomberg / Getty Images

Berkshire Hathaway $BRK.B CEO Greg Abel said Wednesday that communities around the country are pushing back harder against data center construction. "There is a lot more pushback in the communities across the U.S.," Abel told CNBC's Becky Quick.

Abel said Berkshire's involvement in the data center boom centers on supplying power and electricity to these facilities. The conglomerate is open to supplying energy to large computing companies, but only under a specific condition. "We are interested in serving these hyperscalers ... if there was no impact to the rates of our other customers," he told CNBC.

Wall Street analysts have echoed those concerns. Vikram Malhotra at Mizuho flagged in a note to clients Tuesday that data centers could emerge as a defining political issue heading into the midterms. "This is clearly an evolving situation as some investors question the set-up with upcoming mid-term elections and validity of claims around resource consumption and limited long-term job creation," Malhotra wrote, according to CNBC.

The U.S. currently hosts approximately 4,700 data centers, a figure that has been climbing steadily, according to CNBC.

The political pushback Abel described has been intensifying for months. New York Gov. Kathy Hochul signed an executive order imposing a one-year moratorium on construction of large new data centers, making New York the first state to enact such a ban. The order blocks state agencies from approving permits for facilities drawing 50 megawatts or more of electricity, though projects that already hold all required permits are unaffected.

The broader backlash is driven by rising electricity costs and water consumption tied to the facilities. Electricity bills near major data center hubs have climbed as much as 267% over five years, and data centers now account for 4% to 5% of all U.S. electricity consumption. At least 11 states have active moratorium bills, and more than 150 pieces of energy-related legislation have been considered across statehouses in 2026 alone.

Local opposition has also shaped elections. In Warrenton, Virginia, voters replaced every town council member who supported an Amazon $AMZN data center proposal in the November 2024 election. Virginia alone has 42 activist groups working to slow, stop, or regulate data center development.

Join 500,000+ readers who start their day with Quartz.

By subscribing, you agree to our Terms of Service and Privacy Policy.

Global business news for a smarter world