Caterpillar sold $2.8 billion of power-generation equipment and services in the first quarter of 2026, up 41 percent from a year earlier. The manufacturer attributed the increase in sales of large engines, turbines and related services primarily to data centers.
Its April 30 financial report separated those sales from equipment used in oil and gas operations and other industrial settings. Power generation grew faster than either of those categories. Across Caterpillar’s broader Power & Energy business, profit rose 13 percent, though its profit margin fell to 20.6 percent from 22.3 percent as manufacturing costs, particularly import tariffs, increased.
A large order announced earlier in the year shows how the engines are being used. In January, American Intelligence & Power ordered two gigawatts of natural-gas generators from Caterpillar and its dealer Boyd CAT for the Monarch Compute Campus in West Virginia. The equipment is intended to supply power at the data-center site. Batteries would help accommodate sudden changes in electricity demand from AI computers.
The January agreement scheduled deliveries from September 2026 through August 2027, with generating equipment expected to enter service within months of delivery. It also included equipment financing through Caterpillar Financial, subject to agreed terms. Caterpillar would sell the generators, provide service and parts support, and participate in financing their purchase.
Power equipment and cooling
Eaton, which makes electrical equipment for buildings and industry, reported a similar increase in demand. In its first-quarter results, the company said its Electrical Americas business had $3.6 billion in sales, up 20 percent. Growth excluding acquisitions and currency changes was 14 percent.
Eaton’s twelve-month average of orders for that business increased 42 percent from a year earlier, excluding acquisitions and currency changes. Its backlog, the value of orders still to be filled, grew 44 percent. The company attributed the order growth to data-center demand.
Eaton also bought a supplier of cooling equipment. It completed the acquisition of Boyd Thermal on March 12. The business makes components and systems that remove heat from equipment in data centers, aircraft and other settings. It brought more than 6,000 employees and manufacturing sites in North America, Asia and Europe.
Paulo Ruiz, Eaton’s chief executive, said the purchase would let the company combine its power-management products with Boyd Thermal’s liquid-cooling systems to serve AI customers. Eaton placed the acquired business in its Electrical Global division and said it expected the purchase to increase adjusted earnings in the second year after closing.
