Caterpillar Reports Record $72 Billion Power Generation Backlog Driven by AI Demand
Caterpillar (NYSE: CAT) reported a record backlog of over $72 billion in its Power & Energy segment for the second quarter of 2026, driven largely by surging demand from data centers and large-scale power generation projects tied to the artificial intelligence boom. This represents a year-over-year increase of 92%, with strong growth also seen in orders for generator sets and turbines. The backlog is expected to be partially fulfilled within the next year, though much of it extends well beyond typical construction industry timelines. The company faces challenges related to production capacity rather than demand levels as it works to meet customer needs through expanded manufacturing capabilities, including a planned restart of its 10-megawatt gas engine platform. Caterpillar's future is increasingly tied to power grid infrastructure and AI-related projects instead of traditional construction cycles like housing starts. Caterpillar’s stock has risen over 90% in the past year as it benefits from long-term revenue visibility, but analysts at The Motley Fool have not included Caterpillar on their current list of top investment picks.
Topics: AI infrastructure backlog demand surge power generation