US Automakers Shift Gears for AI Data Center Boom

Major US automotive and heavy equipment manufacturers are shifting their business models to capitalize on the booming demand for power equipment in AI data centers. Caterpillar, Cummins, Eaton, and Ford are among those benefiting from the trend.

Caterpillar, the world's largest construction equipment manufacturer, saw its engine and turbine sales surpass its construction equipment revenue for the first time last year. The company has been investing heavily to meet demand, with a $275 million expansion of its Indiana factory expected to create 100 new jobs.

Earlier this year, Caterpillar won contracts from NScale to supply natural gas generators for Microsoft's data center in West Virginia, which will feature a large-scale deployment of Nvidia's Vera Rubin GPUs. The facility is expected to reach up to 8GW of power capacity by 2031 and become one of the largest dedicated AI compute installations worldwide.

Cummins is also reaping rewards from the trend, with its Power Systems segment earning record profits in Q1 2026 due to 'continued strong demand for data center backup power.'

Ford plans to supply its excess EV batteries to AI data centers and other large factories amid declining demand for electric cars. Eaton's data center business has also grown significantly, accounting for 21% of the company's revenue last fiscal year.