Caterpillar Races to Build Generators for Power-Hungry Data Centers

Dow Jones00:45

Data-center developers' demand for generators is booming, and Caterpillar is racing to meet it.

The construction equipment maker said Tuesday it converted an existing plant in Wamego, Kan., to make turbine engines popular with data centers. Caterpillar also is resuming production of 10-megawatt generators, last made in 2022, and which the company expects to begin shipping in the fourth quarter.

"Without significant investment, we're able to restart production by leveraging our existing supply base," CEO Joe Creed said.

Sales from Caterpillar's power and energy business rose 17% during the second quarter from a year earlier. The company cited robust demand from data-center customers that use generators for backup power and as primary sources of electricity. Caterpillar shares traded about 7% higher.

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