Caterpillar (CAT)
Largest genset supplier globally. Behind-the-meter power for DCs.
- Ticker: CAT
- Sector: power equipment (genset)
- DC exposure tier: mid
Caterpillar (CAT) is a moderate-exposure data-center supply-chain name in the power equipment sector. Data Center Index tracks Caterpillar's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Caterpillar data center thesis
Caterpillar is the largest global supplier of large gen-sets, the diesel and gas engines that sit behind every hyperscale data center as backup and increasingly prime power. Backlog hit $37.1B in Q1 2026, up 110.8% YoY, with Energy & Transportation now the fastest-growing segment as DC backup-gen demand pulls capacity that historically went to oil & gas.
Bull case
- Backlog more than doubled YoY to $37.1B in Q1 2026 (+110.8%), the steepest acceleration in CAT history and a direct read on hyperscaler backup-power orders 18-24 months out.
- Large gen-set lead times sit at 20-40 weeks against tight capacity; Cummins disclosed DC segment grew 31% and now exceeds construction-equipment revenue, validating the structural mix shift CAT is riding.
- Hyperscaler 2026 capex guides ($200B+ at Amazon, $185B at Google) flow disproportionately to behind-the-meter power as grid interconnect queues stretch 4-7 years, making on-site generation the bottleneck-reliever.
Bear case
- Stock sits at the 94.5th percentile of its 52-week range after a 178% one-year run; any moderation in hyperscaler capex cadence collapses the multiple before earnings catch up.
- Construction Industries and Resource Industries still drive most revenue and remain mid-cycle to late-cycle; a US construction slowdown would offset E&T strength and re-rate the whole company down.
- Backup-gen orders are lumpy and front-loaded; once hyperscalers complete their 2026-2027 reservation cycle, book-to-bill normalizes below 1.0 and the backlog tailwind reverses.
Data center exposure rationale
Backup gen-set demand for DCs is a stated growth driver in Energy & Transportation, but Construction Industries and Resource Industries still drive most revenue.
Caterpillar revenue and capex
In fiscal 2025, Caterpillar reported revenue of $67.6B, capital spending of $2.8B and operating income of $11.2B.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $67.6B | $2.8B | $11.2B |
| 2024 | $64.8B | $2.0B | $13.1B |
| 2023 | $67.1B | $1.6B | $13.0B |
Tracked Caterpillar data center projects
- Meta Hyperion, 5 GW, Holly Ridge, LA · under construction
- OpenAI Stargate Abilene, 1.2 GW, Abilene, TX · operational
- Crusoe Abilene Expansion, 900 MW, Abilene, TX · under construction
- Amazon Mattameade Tech Campus, 770 MW, Woodford, VA · permitted