While the AI boom dominates headlines, the steady‑hand investing style of Warren Buffett continues to reward Berkshire Hathaway. The 96‑year‑old investor, who stepped down as chairman in early 2025, built his empire on companies that the economy cannot do without – insurance, railroads, and especially utilities. Those same utilities are now seeing a surge in demand as AI‑driven data centers require massive amounts of power.
Utilities become AI‑adjacent
Berkshire’s portfolio includes major utility firms that supply electricity to large swaths of the country. The most notable is MidAmerican Energy, acquired in 2000 when AI was not even a consideration. Today, MidAmerican provides power to Iowa, a state that has become a hub for data‑center construction. Berkshire CEO Greg Abel told investors that roughly 8% of the company’s energy load in Iowa came from data centers last year, underscoring the direct link between utility assets and AI infrastructure.
Ken Mahoney, president and CEO of Mahoney Asset Management, praised the strategy, noting that “Berkshire was already positioned to prosper off of AI’s most fundamental needs in energy and utilities, and it is very Buffett‑like to have positioning that doesn’t require knowing who will be the main winner(s).” He added that owning companies essential to the economy has always been a hallmark of Buffett’s approach.
Other AI‑related holdings
Beyond utilities, Berkshire holds sizable positions in Apple and Alphabet, both of which are central to the AI ecosystem. Apple was added to the portfolio in 2016 as a durable consumer‑products business, while a stake in Alphabet was announced in June 2026, marking a more direct AI investment.
Even Berkshire’s 2016 purchase of Precision Castparts, a manufacturer of turbine components, is now seeing renewed relevance. Turbines are critical for generating the electricity that powers data centers, and demand for these parts has risen sharply as AI workloads expand. Adam Patti, CEO of VistaShares, highlighted that “turbines are one of the biggest bottlenecks for data centers – they’re in the sweet spot.”
Why the boring bets matter
Buffett’s philosophy of investing in businesses that people need every day has proven resilient amid rapid technological change. Cathy Seifert of CFRA Research called the AI angle “an interesting lens” on Berkshire’s long‑standing utility holdings, noting that the original acquisition was pure luck and good fortune, but the outcome aligns with Buffett’s timeless principle of owning indispensable assets.
As AI continues to reshape the economy, the demand for reliable, low‑cost power will only grow. Berkshire’s utility holdings, from MidAmerican to NV Energy in Nevada, are positioned to capture that growth without the volatility that often accompanies high‑flying tech stocks.
Looking ahead
Analysts expect the trend of data‑center expansion to persist, especially in regions with abundant renewable energy and favorable regulatory environments. For Berkshire, that means continued earnings from its utility subsidiaries, reinforcing the notion that “boring” investments can deliver consistent, long‑term profits.
In a market where many chase the latest AI hype, Berkshire Hathaway’s steady focus on essential infrastructure offers a reminder that solid, value‑based investing remains a powerful strategy for both investors and the broader economy.
Original reporting: KTVZ (Central Oregon) — read the source article.
