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Caterpillar's power and energy division has become its fastest-growing sales unit, fueled by increased demand from data center projects for artificial intelligence (AI). The company anticipates annual sales growth of 5% to 7% through 2030, surpassing the previous average of 4%.

To capitalize on this trend, Caterpillar plans its largest factory investment in 15 years, with $725 million allocated to its Lafayette, Indiana plant for producing more piston-driven engines and doubling turbine engine capacity by 2030. Demand for electricity at data centers is projected to triple by 2035, according to the International Energy Agency. CEO Joe Creed indicated that the rise of generative AI has marked a significant turning point for the company.