Caterpillar sales surpass $20B as generators for data centers take off

Caterpillar just posted record sales of $20.5 billion for the second quarter, and a big driver was demand for power generators used at data centers. Sales of that generator equipment jumped 72% compared to last year, as tech companies keep building out the massive computing facilities that run artificial intelligence. To keep up, Caterpillar is restarting production of a large gas-powered generator engine it had stopped making back in 2022.

This might seem far removed from your own home, but it points to a bigger trend worth knowing about: the surge in data center construction across the country is driving up demand for electricity, and much of that new demand is being met with gas generators and turbines rather than cleaner sources. Utilities and grid operators are increasingly focused on where all this extra power will come from, and that can affect electricity costs and grid reliability in the areas where these data centers are built.

There's no direct action for homeowners here — this is a corporate earnings story about equipment manufacturing, not a rebate or incentive program. But if you live near a region where data centers are expanding, it's worth paying attention to how your local utility plans to supply that added power, since it can shape electricity rates and grid capacity in your area over time.