Caterpillar Reports Growth From Data Center Demand

Caterpillar is reshaping how customers use its equipment as demand shifts toward data centers, autonomous operations and energy reliability. On its latest earnings call, held on Thursday (Jan. 29) the company described customers deploying machines, engines and services as long-lived infrastructure rather than short-cycle construction assets.

Data center construction emerged as a primary demand driver. Customers are using Caterpillar generator sets and turbines as primary power sources, not just backup systems, to support hyperscale and enterprise data centers. Power and Energy sales to users rose 37% in the fourth quarter, while power generation sales increased 44%, fueled by large orders tied to AI and cloud workloads.

Caterpillar said operators are building on-site power plants to bypass grid constraints, accelerate timelines and guarantee uptime for compute-intensive workloads that cannot tolerate interruptions.

Those data center builds are also pulling demand into oil and gas applications. Operators increasingly rely on natural gas to fuel on-site generation, driving orders for gas compression equipment and turbines that manage fuel flow and pressure. Caterpillar supplies systems that support continuous operation across upstream and downstream power infrastructure.

In mining and quarry operations, customers are expanding the use of autonomous hauling systems to boost productivity and safety while reducing labor constraints. Caterpillar ended the year with 827 autonomous haul trucks in operation, up from 690 a year earlier, as miners scaled autonomy across large sites.

Customers are no longer limiting autonomy to large metal mines. Quarry and aggregates operators are adopting mixed fleets that combine autonomous trucks on repetitive haul routes with human-operated equipment in more complex environments. Caterpillar said customers use autonomy to stabilize output and control costs in operations that run continuously.

Construction customers are also tying demand to data center and energy projects. Sales to users in Construction Industries rose 11% in the quarter as contractors deployed equipment for site preparation, earthmoving and material handling tied to industrial and power infrastructure. Contractors increasingly rely on rental fleets to support these large, capital-intensive builds.

Across all segments, Caterpillar is embedding services and connectivity into customer workflows. Services revenue reached $24 billion for the year, supported by a connected fleet of more than 1.6 million assets.

Caterpillar expects these use cases to drive growth toward the upper end of its long-term target range in 2026, with Power and Energy leading. The company plans to increase capital spending to expand capacity for engines, turbines and large power systems.