Caterpillar links power-equipment sales surge to data-center demand
DataNews Editorial Team
Caterpillar reported a sharp increase in power-generation equipment sales, with CEO Joseph Creed attributing the rise to very strong demand for large generator sets and turbines used in data centers. According to S1, customers are placing orders for the company’s power and energy equipment with delivery horizons extending to 2030.
- Caterpillar’s retail sales of power-generation equipment rose 72% in the quarter, according to S1.
- Caterpillar CEO Joseph Creed linked demand for large generator sets and turbines to data-center applications.
- Customers are reportedly placing orders for Caterpillar power and energy equipment through 2030.
- Caterpillar’s US$72 billion backlog is company-wide and should not be treated as a measure of data-center or power-equipment orders.
- The sales trend could signal longer procurement cycles for generation and related power infrastructure if data-center demand remains elevated.
Caterpillar’s second-quarter results point to data-center power infrastructure as an increasingly material demand driver for large-scale generation equipment.
The company reported 24% year-on-year growth in total revenue. Retail sales across its Power and Energy segment rose 33% in the quarter, while retail sales of power-generation equipment increased 72%, according to S1. CEO Joseph Creed said the growth reflected very strong demand for large generator sets and turbines used in data centers.
The demand signal is also extending into the order book. S1 reported that customers are placing orders for Caterpillar power and energy equipment through 2030. Caterpillar’s company-wide backlog reached a record US$72 billion, up 92% over the past year. That backlog is not broken out between power equipment, data-center applications, or other end markets.
For data-center operators and developers, the trend highlights the growing role of on-site and backup power in project delivery as grid capacity becomes a central infrastructure constraint. Stronger demand for generation equipment could indicate longer procurement cycles for large generator sets, turbines and related electrical infrastructure, particularly where new campuses require power solutions alongside grid interconnection.
S1 also stated that data centers consumed about 4.9% of US electricity supply in 2025, with consumption above 10% in some states and more than one-quarter in Virginia. The article said US data-center electricity consumption is projected to more than double by 2030. These figures reinforce the broader premise that power availability is becoming a key component of capital planning for AI data-center development.
The results suggest that power constraints at data-center developments are translating into faster demand for distributed generation and turbine equipment. If demand persists, suppliers of generation equipment and associated power infrastructure could see longer order cycles and higher manufacturing utilization.
- — / October 24, 2026 · EnglishSource →
This article was prepared by the DataNews editorial team based on the sources listed above.