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The construction of data centers is anticipated to accelerate in 2026 due to rising demand for artificial intelligence (AI) computing. Analyst Chad Dillars from Bernstein suggests that Caterpillar Inc (NYSE: CAT) could be a major beneficiary as hyperscalers like Amazon, Microsoft, and Alphabet may shift towards onsite energy production to mitigate rising electricity costs and political backlash.

Caterpillar's production of alternative engines and turbines positions it as a key supplier for this energy generation boom. The company is expected to secure approximately $15 billion in new contracts for power plants, which highlights significant opportunities. With decentralized energy solutions becoming critical, Caterpillar's role in supporting next-generation data centers strengthens long-term investor confidence, complemented by a 0.93% dividend yield.