US manufacturing activity reached its highest level since 2022 in July, driven largely by demand for power equipment used in artificial intelligence data centers. According to a report by The Wall Street Journal, industrial companies including Caterpillar Inc., Cummins Inc., and Ford Motor Company are adjusting their business strategies to capture this market shift.
Caterpillar has identified electricity generators as its most profitable business segment. The company is allocating $725 million to increase generator output at a facility in Indiana. Additionally, Caterpillar is converting a plant in Kansas to manufacture turbine engines favored by data center operators and has resumed production of 10-megawatt generators, a product line last produced in 2022.
Joe Creed, the company’s CEO, stated that data center clients are requesting additional units if capacity allows.
Cummins is also expanding its capacity in this sector. The firm is investing $450 million to boost generator production, following a $200 million expansion completed in the previous year. Management projects that sales related to data centers will increase by 80 percent, reaching $9 billion by 2030. This target reflects the company’s confidence in the sustained growth of the AI infrastructure market.
Ford Motor Company was also identified as a manufacturer moving toward opportunities adjacent to AI data centers. However, the company disclosed fewer specific investment figures compared to its peers in the industrial equipment sector.
