AI data center boom pushes Caterpillar, Ford, and other US firms into new businesses
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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...
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