Demand for on site power keeps climbing as data centers outbuild the grid, and BofA calls power “a bullish call” for Caterpillar. Their work shows $CAT reciprocating engine and industrial turbine businesses are sitting right in the sweet spot for both prime and backup power, with Virginia air permit data showing CAT as the clear leader on >1MW units and Cummins a distant second. BofA highlights that 3 year CAGR for data center construction starts is running just under 100% while power infrastructure starts are only up about 16%, which they see as a setup for CAT through 2026–2027. Caterpillar is already responding, planning to double reciprocating engine capacity and lift turbine capacity 2.5x to support roughly 50GW of generation by 2030, even though not all of that will go into data centers.