Close Menu
    Facebook X (Twitter) Instagram
    Monday, September 21
    • Home
    • About Us
    • Contact Us
    • Submit Your Story
    • Terms of Use
    • Privacy Policy
    Facebook X (Twitter) Instagram
    Fortune Herald
    • Business
    • Finance
    • Politics
    • Lifestyle
    • Technology
    • Property
    • Business Guides
      • Guide To Writing a Business Plan UK
      • Guide to Writing a Marketing Campaign Plan
      • Guide to PR Tips for Small Business
      • Guide to Networking Ideas for Small Business
      • Guide to Bounce Rate Google Analyitics
    Fortune Herald
    Home»Business»Data Center Pushback Mounts as Greg Abel Warns on Hyperscaler Costs
    data center pushback
    Business

    Data Center Pushback Mounts as Greg Abel Warns on Hyperscaler Costs

    Funke AdeyemiBy Funke Adeyemi20/09/2026No Comments4 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Greg Abel, chief executive of Berkshire Hathaway, used a Wednesday interview with CNBC’s Becky Quick to put a number on the data center pushback building across the United States, and to set out the conditions under which Berkshire will, and will not, power the AI buildout.

    ‘There is a lot more pushback in the communities across the U.S.,’ Abel said. The resistance, he made clear, is not hypothetical. It is organised, it is political, and it is beginning to reach statehouses.

    The Scale of Data Center Pushback

    The grievances driving that resistance are not hard to locate. Electricity bills near major data center hubs have climbed as much as 267% over five years, according to Quartz, and data centers now account for between 4% and 5% of all U.S. electricity consumption. For communities watching their power bills rise while giant facilities consume local grid capacity, the trade-off has started to look poor.

    At least 11 states now have active moratorium bills on data centers, and more than 150 pieces of energy-related legislation have been considered across statehouses in 2026 alone, according to Quartz. The country hosts roughly 4,700 data centers, and the pipeline keeps expanding.

    New York has gone furthest. Governor Kathy Hochul signed Executive Order No. 62 on 14 July 2026, creating what is described as the first statewide moratorium enacted nationally. The order targets hyperscale facilities consuming large amounts of energy without delivering commensurate benefits to host communities; smaller operations serving medical research or educational programmes are exempt.

    The legislative backdrop to that order was already in place. The New York State Legislature passed the Responsible Data Center Development Act (S10642/A11560) on 4 June 2026, clearing the Senate 44–16 and the Assembly 102–39 in the final hours of the legislative session, according to Harris Beach Murtha. The Act directs the Department of Environmental Conservation to produce an environmental impact report covering water use, electricity consumption, land use, tax revenue, and pollution, and requires data centers to set energy efficiency goals.

    The grid pressure behind those votes is visible in the numbers. The New York Independent System Operator reported its large-load interconnection queue grew from six projects totalling roughly 1,045 MW in 2022 to 48 proposals totalling approximately 12 GW by 31 December 2025, according to Harris Beach Murtha. More than two-thirds of those capacity requests entered the queue in 2025 alone, according to ESG Dive.

    Berkshire’s Condition for Serving Hyperscalers

    Abel’s interest in the sector is primarily about electricity generation and transmission, not the facilities themselves. Berkshire wants the revenue that comes from powering supercomputing campuses, but only on terms that protect existing ratepayers.

    The snippet of his remarks that circulated initially quoted Abel saying Berkshire would serve hyperscalers only if there was ‘no impact to the rates of our other customers.’ The fuller picture, reported by CNBC, goes further: Abel stated that Berkshire’s actual policy requires ‘a net benefit to our customers’ as a condition of taking on hyperscaler load.

    He pointed to Iowa as evidence the model can work. In the state where Berkshire’s MidAmerican Energy subsidiary operates, approximately 8% of load came from data centers in the prior year. Despite that concentration, MidAmerican’s rates remain 45% below the national average, according to CNBC.

    That record is what Abel is offering as a template. The implicit argument: data center growth and rate protection for ordinary customers are not mutually exclusive, provided the utility holds the line on cost allocation.

    On Wall Street, Mizuho analyst Vikram Malhotra flagged the political dimension in a note dated 1 September 2026. ‘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 Traders Union. Malhotra also observed that the data center pushback and resulting project delays could benefit owners of existing facilities, since new supply would be constrained while demand continues to grow.

    The midterms, then, are the next stress test. If candidates in power-strained districts run successfully against hyperscaler expansion, the legislative map will harden further. For Berkshire, the bet is that utilities with a clean rate record (MidAmerican’s 45%-below-average benchmark being the exhibit) will be the ones still welcome at the table when the politics settle.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Funke Adeyemi

    Funke Adeyemi spent a decade in corporate banking and fintech before moving to business journalism. She started in trade finance at a major UK bank, moved to a payments company scaling into African markets, and spent her last role leading partnerships at a cross-border remittance platform. She writes about business strategy, fintech, digital banking, and the corporate news that moves markets. She is interested in how companies actually make money rather than how they describe making money in investor presentations. Funke lives in South London. She reads earnings calls the way other people listen to podcasts, and finds them about as reliable.

    Related Posts

    WeatherNext 3 Forecast Accuracy Resets the Bar for AI Meteorology

    21/09/2026

    Builders Stage TechCrunch Disrupt 2026 Puts Founders Face to Face With Real Operators

    21/09/2026

    New Jersey Pushes Prediction Markets Supreme Court Fight Into New Territory

    20/09/2026
    Leave A Reply Cancel Reply

    Fortune Herald Logo

    Connect with us

    FortuneHerald Logo

    Home   About Us   Contact Us   Submit Your Story   Terms of Use   Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.