The big picture: Several major US automotive and heavy equipment manufacturers are reportedly modifying their business models to capitalize on the exploding demand for power equipment in AI data centers. Caterpillar, Cummins, Eaton, and Ford are among the major US industrial companies benefiting from the AI boom.
Caterpillar is the world's largest construction equipment manufacturer, ahead of rivals Komatsu, Volvo CE, Hitachi, and JCB. However, its engine and turbine sales surpassed its construction equipment revenue for the first time last year, as AI data centers turn to jet engines and diesel generators for power.
According to CEO Joe Creed, the company began "modernizing and investing" last year to meet burgeoning demand from data centers. A major part of that investment went toward expanding capacity at its factory in Lafayette, Indiana. The expansion is expected to cost around $275 million and create 100 new jobs.
Earlier this year, Caterpillar won contracts from Nscale to supply G3516 natural gas generators for the proposed 2,250-acre Monarch Compute Campus in Mason County, West Virginia. The facility will provide 1.35GW of power for a Microsoft data center featuring a large-scale deployment of Nvidia's Vera Rubin NVL72 GPUs.
The Mason County facility is expected to reach a total power capacity of up to 8GW by 2031, potentially becoming "one of the largest dedicated AI compute installations in the world." The plant will be built in phases, with the first phase expected to come online by 2028 with a capacity of 2GW.
Cummins is also reaping the rewards of the AI boom, with demand for its diesel, natural gas, and hydrotreated vegetable oil generator sets reaching record highs. According to CEO Jennifer Rumsey, the company's Power Systems segment earned record profits in Q1 2026, fueled by "continued strong demand for data center backup power."
The company is now expanding its product portfolio to include larger generators that can be used as the primary power source for data centers. The new generators will use 130-liter engines powered by natural gas and produce 4MW of electricity.
Ford is also looking to data centers to supplement its automotive revenue. The company reportedly plans to supply its excess EV batteries to AI data centers and other large factories amid declining demand for electric cars.
Eaton, an Ohio-based manufacturer of circuit breakers, switchgear, and other electrical equipment, has also expanded its data center business. The segment accounted for 21% of the company's revenue in the last fiscal year, up from 14% in 2023.
Rehlko, Johnson Controls, and a host of other major US heavy equipment manufacturers are also capitalizing on the AI data center boom. The trend has partly contributed to US manufacturing output rising in July to its highest monthly level since the Covid-fueled growth of 2021 – 22.
AI data center boom pushes Caterpillar, Ford, and other US firms into new businesses
