Analysis of Berkshire Hathaway's GOOGL Stake & Google's $40B Texas Data Center Investment

On November 14, 2025, two key developments related to Alphabet Inc. (GOOGL) emerged, sparking investor discussion in a Reddit weekend thread. First, Berkshire Hathaway revealed a new $4.3–$4.9 billion stake in Google parent Alphabet via a 13F filing with the SEC, owning 17.85 million shares as of September 30, 2025 [1][2][3]. This disclosure came alongside Berkshire reducing its Apple stake for the third consecutive quarter [1][5]. Second, Google announced a $40 billion investment to build three new AI data centers in Texas (Armstrong and Haskell counties) by 2027, including a co-located solar and battery storage plant for one facility to mitigate grid impact [6][7][9]. The event was widely covered in financial media on November 14–15, 2025.

• Alphabet’s GOOGL shares closed at $276.41 on November 14, 2025, representing a 1.84% gain from the previous trading day [0].
• Post-market trading saw an additional ~3% increase (to $284.70) following the Berkshire stake announcement, indicating positive institutional sentiment [3].
• Trading volume on November 14 (31.1 million shares) was slightly higher than the previous day’s 29.5 million shares, reflecting increased investor activity [0].

• Berkshire’s stake signals strong institutional confidence in Alphabet’s long-term value, potentially attracting other large investors [5].
• Google’s $40 billion data center investment positions Texas as the U.S. leader in AI infrastructure, supporting future growth in cloud computing and AI services [6][9].
• Sentiment: Mixed retail investor chatter on Reddit but positive institutional reaction, as evidenced by post-market price gains.

• Alphabet Inc. (GOOGL, GOOG): Primary beneficiary of both developments [0][3].
• Berkshire Hathaway (BRK.A, BRK.B): Indirectly affected via portfolio reallocation [1][5].

• Technology
  : AI/cloud infrastructure providers (positive tailwind from data center investment).
• Energy
  : Solar panel manufacturers and battery storage firms (suppliers for Google’s co-located facility [7]).
• Construction
  : Companies involved in data center building (demand from Google’s Texas projects [6]).

• Upstream
  : Solar panel producers, battery suppliers, construction materials firms.
• Downstream
  : Cloud service users, AI startups leveraging Google’s expanded infrastructure.

1. Berkshire’s Decision-Maker
   : Unclear if the Alphabet stake was approved by Warren Buffett or his successors (Greg Abel), as the investment deviates from Buffett’s typical focus on consumer staples [5].
2. Google’s Capex Timeline
   : Exact quarterly allocation of the $40 billion data center investment over 2026–2027 is not publicly disclosed.
3. Grid Capacity
   : ERCOT’s ability to support the new data centers without straining Texas’s power grid remains a question [7].

• Operational Risk
  : Users should be aware that potential power grid constraints in Texas may impact the reliability of Google’s new data centers, despite the co-located solar/battery plant [7].
• Strategic Uncertainty
  : Berkshire’s shift from Apple (a long-term holding) to Alphabet raises questions about its tech sector strategy, warranting close monitoring of future portfolio changes [1][5].

1. Google’s quarterly capex reports to track data center investment progress.
2. ERCOT’s grid capacity updates for Texas.
3. Berkshire’s future 13F filings for changes in its Alphabet stake.
4. Construction milestones for the Texas data centers (timeline and cost overruns).

[0] Ginlix Analytical Database
[1] New York Post: Warren Buffett’s Berkshire Hathaway reveals $4B stake in Google parent…
[2] Bloomberg: Buffett Acquires $4.9 Billion Stake in Google Parent Alphabet
[3] Seeking Alpha: Berkshire adds Google stake, exits D.R. Horton…
[5] CNBC: Berkshire Hathaway’s surprising new tech stake
[6] Fox4News: Google announces $40 billion plan to open 3 new AI data centers in Texas
[7] Texas Tribune: Google to build three new data centers in Texas…
[9] Bloomberg: Google to Invest $40 Billion in New Data Centers in Texas