Caterpillar taps AI power boom to drive next phase of growth

The rapid scaling of AI is reshaping not only the technology sector but also the industrial economy behind it. Every query processed by a large language model, and every new system trained by hyperscale providers, requires massive computing power, and huge amounts of electricity. Data center construction is expanding so quickly that many local power grids are struggling to keep up.

This structural gap is emerging as a powerful tailwind for Caterpillar Inc. (NYSE: CAT). Long associated with construction and mining machinery, the group is increasingly positioning itself at the center of the AI infrastructure supply chain, supplying generators, turbines and related energy systems critical to data center development.

Visible Alpha consensus shows Caterpillar’s power & energy revenues are expected to climb to $35.9 billion in 2026, accounting for nearly half of total group sales. The segment has already overtaken its traditional construction and resources businesses to become the company’s largest revenue contributor. While those legacy divisions are expected to post modest single-digit growth (albeit improving from a weaker 2025) the power segment is projected to expand by 11.64% in 2026.

Recent contracts highlight how Caterpillar is increasingly tied to the buildout of AI infrastructure. Its flagship deal involves supplying up to 2 GW of natural gas-powered generators to a large data center campus in Mason County, with scope to expand significantly. The project, backed by partners across the AI ecosystem, reflects a broader shift toward “bring your own power” data centers, where on-site generation helps bypass grid constraints.

As AI-driven electricity demand continues to rise, Caterpillar’s evolution from cyclical machinery maker to a key enabler of digital infrastructure highlights how the energy intensity of computing is reshaping industrial growth narratives.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.