Caterpillar's Power Play Pays Off as Data Center Demand Surges

Caterpillar Inc. (NYSE:CAT) is benefiting from strong demand for backup power and equipment related to the growth of data centers. The company has seen a surge in orders, leading it to lift its sales growth expectations for the year.

The construction and mining machinery maker's power and energy division is driving this growth, with large generator sets, natural-gas engines, and battery systems in high demand. Data centers require reliable backup power and on-site generation to keep operations running without interruption.

Caterpillar's order backlog has swelled to a record level, indicating strong demand across its product lines. The company's ability to supply large blocks of dependable power has made it an attractive partner for data center operators.