Chevron and Caterpillar: Two Giants Vie for AI Power Supremacy

Electricity demand is skyrocketing due to the AI revolution, and companies like Caterpillar (CAT) and Chevron (CVX) are competing to provide reliable power. Cat has a near-term advantage in this space with its generators that can be placed next to an AI data center, allowing it to come online quickly.

Cat's backlog at the end of the second quarter of 2026 sits at a record $72 billion, up 92% year over year. This highlights the company's strong position in providing power for AI infrastructure.

However, Chevron is working on a long-term plan with Microsoft (MSFT) to build a natural gas power plant dedicated to serving a data center. This deal comes with a 20-year power contract and could represent an important new avenue for growth.