Caterpillar's Record Backlog Driven by Data Center Demand

Caterpillar Inc (NYSE:CAT) has marked momentum with a record backlog and fresh credit lines. The heavy-equipment maker's Power and Energy segment, which supplies backup and prime power to data centers, has emerged as a standout growth driver.

The company secured unsecured credit facilities aimed at bolstering liquidity and supporting general corporate needs. Management lifted full-year sales guidance following a standout quarter in which revenue and margins both climbed sharply on strength across the Power and Energy segment.

Data center construction has accelerated sharply, with hyperscale technology firms racing to secure power capacity for artificial-intelligence workloads. This dynamic has rippled through the heavy-equipment and power-generation supply chain, extending order lead times for generator sets and turbines beyond historical norms.