Dec. 31 at 6:44 PM
Caterpillar has emerged as an unexpected AI beneficiary as surging data center power demand drives growth in its energy and transportation business. Developers seeking alternatives to strained power grids are increasingly turning to Caterpillar’s engines and gas-powered generators to support AI workloads.
In the third quarter, Caterpillar’s energy and transportation segment generated
$8.4 billion in sales and
$1.7 billion in profit, outperforming its construction and resource segments. To meet rising AI-driven energy demand, the company announced a
$725 million expansion at its large engine facility in Lafayette, Indiana.
Strong demand from data center projects has helped push Caterpillar shares up 59% in 2025, far outpacing the broader market. However, some analysts caution that a potential reversal in AI investment could have broad economic consequences.
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