Greg Abel sees big growth for utilities on data center buildouts

• Energy demand from data centers and AI presents a significant growth opportunity for Berkshire Hathaway Energy.
• BHE's MidAmerican utility in Iowa already serves major hyperscalers with rates 45% below the national average.
• The primary challenge is the 'regulatory compact,' where BHE requires balanced returns for risks to deploy capital, especially with inflation and aging infrastructure.

Berkshire Hathaway Energy CEO Greg Abel discussed the significant growth opportunity in energy demand driven by data centers and AI, noting BHE's existing strong position in serving hyperscalers in Iowa. He emphasized that data center users must bear their full costs, preventing burden transfer to other customers. However, he highlighted the challenge of the 'regulatory compact,' stating that BHE will not deploy capital if returns don't adequately compensate for risks, especially with inflation and aging infrastructure.